A $1 million superannuation balance can typically last between 15 and 35 years, depending on withdrawal rates, investment returns, and lifestyle. A moderate, sustainable approach (around $60,000–$70,000 annually) often lasts 25–30 years, while higher spending (>$90,000/year) may deplete it within 15 years.
$1 million is enough for a comfortable retirement if you retire at age 65. This will provide a single person with an income of $60,000 p.a. and a couple with $77,000 p.a., including Age Pension for around 30 years, based on an investment return of 6% p.a. and 3.0% p.a. inflation.
If you retire with $1 million, the answer to “How long will it last?” depends heavily on your withdrawal rate, inflation, taxes, and investment returns. A $40,000 withdrawal rate can potentially last through age 100, while a more aggressive $80,000 withdrawal rate may deplete funds before age 80.
In the organisation's super balance update, it found 2.5 per cent of the population have a super account of more than $1 million, as of June 2021. This represents 417,567 individuals, ASFA said, and is a 29 per cent increase from the 322,200 individuals who held over $1 million in June 2019.
Retiring at 60 with $500,000 in super is possible but challenging, depending heavily on your spending, lifestyle, and if you qualify for the Australian Age Pension. You might cover modest expenses using strategies like drawing down around $20,000 annually (using the 4% rule as a guide) plus other income, but it requires careful budgeting, potentially part-time work, and reducing living costs. A financial advisor can help tailor a plan, as $500k alone usually supports a basic to moderate retirement, not a lavish one.
While many Americans consider $1.5 million to be the "magic number" that they need to save in order to retire, experts advise saving more than that. $1.5 million might not be enough due to the rising cost of healthcare as well as inflation.
Empower Personal DashboardTM data shows 9.1% of people fall into the category of 401(k) millionaire as of September 30, 2025, having accumulated at least $1 million in retirement savings in employer-sponsored plans and individually controlled IRA savings and investment accounts.
Currently the transfer balance cap is $2 million. After you retire any amounts over the cap need to be transferred into an accumulation account or withdrawn taken out as a lump sum. Earnings on any excess amount in your retirement account are taxed at 15%.
The top ten financial mistakes most people make after retirement are:
The Million-Dollar Reality Check
According to Fed data, just over half of Americans (54.3%) have retirement accounts, and of those, less than one in 20 (4.7%) have reached the $1 million mark.
With that being said, what is a wealthy retirement? Well, according to ASFA, a comfortable retirement for a couple is around $75,000 per year and $53,000 for a single person. Given this, I would consider achieving a retirement income of, say, 30% over these amounts to be a wealthy retirement.
Even if you move overseas, your superannuation will typically stay in Australia. If you move to New Zealand, you may be able to transfer your super to a KiwiSaver account. Temporary residents returning home after visiting Australia can apply for a Departing Australia Superannuation Payment.
You can retire at 50 with $1 million in savings and receive a guaranteed annual income of $62,400. Your tax bracket and how much you pay should also be considered when planning how much money you'll need for retirement. Retiring at 60 with $1 million is feasible.
The Super Consumers Australia guide
It assumes you'll own your home and won't be paying rent or mortgage repayments once you've retired. The guide estimates a 'medium' lifestyle will cost a couple who are already retired about $60,000 per year (with a required super balance at retirement of $371,000).
Can you retire on $800k? Yes, $800k provides a healthy nest egg that allows for annual withdrawals of around $60,000 or below, spanning 20 years. If this is sufficient to cover your retirement lifestyle, then $800k gives you an adequate buffer.
Recommended retirement savings generally follow a guideline of having your savings equal to your annual salary by age 30, three times by 40, six times by 50, eight times by 60, and ten times your salary by age 67, though exact figures vary by institution, with percentages of income (10-20%) also suggested, and catch-up contributions available for older savers. These benchmarks help you track progress towards a goal of 10-12 times your final salary by retirement.
For example, if you have retirement savings of $1 million, the 4% rule says that you can safely withdraw $40,000 per year during the first year — increasing this number for inflation each subsequent year — without running out of money within the next 30 years.
It's important to understand the options available to help protect the assets you've spent a lifetime accumulating.