Project your retirement savings growth and estimate your monthly income in retirement.
Rates as of Q2 2025 (example)
This calculator projects how your retirement savings could grow between now and your planned retirement age, based on your current savings, monthly contributions, and an expected rate of return - then estimates a monthly retirement income using the "4% rule" and compares it to your desired monthly income.
This calculator compounds your savings monthly, adding investment growth and your monthly contribution each month until your retirement age, then applies a 4% annual withdrawal rate to estimate sustainable monthly income.
Formula: Each month: Balance = Balance + (Balance × Monthly Rate) + Monthly Contribution, where Monthly Rate = Annual Rate ÷ 12, over (Retirement Age − Current Age) × 12 months. Estimated Monthly Income = (Projected Savings × 4%) ÷ 12. Monthly Gap = Estimated Monthly Income − Desired Monthly Income.
Example: Starting at age 30 with A$20,000 in savings, contributing A$500/month at an expected 6% annual return (example rate — enter your own assumption) until age 65 (35 years), the projected savings would grow to about A$874,826.18 - of which A$230,000 is total contributions and roughly A$644,826.18 is investment growth. Under the 4% rule, this would support an estimated monthly income of about A$2,916.09 - against a desired A$4,000/month, leaving a shortfall of roughly A$1,083.91/month. (Note: this example is for illustration purposes only - actual returns vary and aren't guaranteed.)
This calculator models a general investment portfolio and is useful for understanding the mechanics of long-term compounding, but most Australians build the bulk of their retirement savings through superannuation - a tax-advantaged retirement savings system where employers contribute a percentage of your salary (the Super Guarantee) and you can make additional voluntary contributions, including salary-sacrificed amounts taxed concessionally within the fund (see our Superannuation Calculator for a super-specific projection). Funds in superannuation generally can't be accessed until you reach your "preservation age" (currently between 55 and 60 depending on your date of birth) and meet a condition of release, unlike the savings modeled in this general calculator which assumes ongoing access. The "4% rule" used here for estimating sustainable retirement income originates from US-based research (the "Trinity Study") and is a rough guideline rather than a guarantee - it doesn't account for sequence-of-returns risk, changing spending needs throughout retirement, or Australia's tax and pension settings. Many retirees also receive some level of the Age Pension (subject to means and assets tests - see our Age Pension Calculator), which can supplement personal savings and reduce the amount needed from your own investments.
The 4% rule suggests that withdrawing 4% of your retirement savings in the first year, then adjusting for inflation each year after, has historically had a high probability of lasting at least 30 years (based on US historical market data from the "Trinity Study"). It's a useful rule of thumb for rough planning, but it doesn't account for Australia's specific tax and pension settings, sequence-of-returns risk, or individual spending patterns - more conservative withdrawal rates (e.g., 3-3.5%) are sometimes used for added safety, especially for longer retirements.
This calculator models a general investment account with no specific tax treatment, useful for understanding compounding mechanics broadly. The Superannuation Calculator is tailored to Australia's super system, including the concessional tax treatment of contributions and earnings within super, and preservation age rules - it's generally more relevant for most Australians' retirement planning since superannuation is the primary retirement savings vehicle.
No - this calculator projects your own savings and income from those savings only. Many Australians also receive some level of Age Pension in retirement, subject to means and assets tests, which can supplement personal savings - see our Age Pension Calculator to estimate your potential entitlement separately.
This calculator projects growth in today's dollar terms based on your inputs, without separately modelling inflation - so the future balance shown is in "future dollars," which will have less purchasing power than the same amount today. To account for this, you can either use a lower "real" (inflation-adjusted) return rate as your assumption, or use our Inflation Calculator to understand how much your desired income would need to be in future dollars to maintain today's purchasing power.
Preservation age is the minimum age (currently between 55 and 60, depending on your date of birth) at which you can generally access your superannuation savings, provided you also meet a "condition of release" (such as retiring). This is different from the general savings modelled in this calculator, which assumes funds are accessible at any time - if most of your retirement savings are in super, your actual access timeline depends on your preservation age.
There's no single right answer - it depends on your current age, desired retirement age, desired income, expected returns, and existing savings. Use this calculator to experiment: try different monthly contribution amounts to see how they affect your projected savings and the gap (or surplus) between your estimated and desired retirement income, and adjust based on what's realistic for your budget.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The expected return rate and 4% withdrawal rate used are examples only and do not represent guaranteed returns or outcomes - actual investment returns vary and are not guaranteed, and this calculator does not account for inflation, fees, taxes, or the Age Pension. Always consult a qualified financial adviser for retirement planning advice specific to your circumstances.