Is one million dollars enough to retire in Australia?

A question that’s often asked – is one million dollars enough to retire in Australia?

My answer? It really depends on a few things.

Retirement age

The age that you want to retire in Australia and the age until which you live. Obviously, the more time between the two ages mean that you’ll need more money to maintain your standard of living.

Your dreams

How do you want to spend your time in retirement in Australia? If you want to travel frequently, enjoy your favourite hobbies and live relatively freely, then again, you’ll need more funds to sustain it.

Debt levels

Do you plan on retiring in Australia debt-free? Mortgage and loan repayments can have a big impact on your monthly outgoings and will naturally increase the amount you’ll need to live the life you want, whilst still making repayments.

Living expenses

If you want to spend your retirement in Australia enjoying the finer things in life, living in a larger home and frequently dining out, then you will obviously need a higher budget.


How you invest your retirement savings and what subsequent returns you achieve, particularly during the earlier years of retirement, will impact how much money you need to have at the time of retiring.

So in a nutshell, yes, one million dollars should be enough to retire quite comfortably in Australia – for some.

For others however, possibly not. The more expensive your tastes, the more money you’ll need to live the retirement you dream of.

It’s important to remember that one million dollars doesn’t go as far as it used to. Equally, it can seem like a million miles away for some expat savers.

Some actual retirement sum estimates

According to the ASFA retirement standard you can retire to a ‘modest’ lifestyle with an income of $29,139 a year – or $41,929 per year as a couple.

A modest lifestyle in this sense is defined as living costs, plus:

  • Private health insurance
  • A couple of domestic holidays 
  • A car – although not a brand new one

To achieve this you’ll need somewhere in the region of half a million dollars in savings. That’s presuming you plan to retire at 65 and own your own home.

In fact, you can get pretty comfortable for ‘just’ $545,000, or $640,000 as a couple.

This lump sum would give you enough income to eat out regularly, do a few upgrades around the home and purchase a new car.

What would one million dollars allow me during retirement?

It would allow you a lot of comfort. Once you’ve covered off the basics, and most of the nice-to-haves, you’ll still have enough regular income to do most things you wish, like treating the grandkids and traveling to other countries. As long as you are sensible, one million dollars is more than enough to retire in Australia.

You can read more information here about
how much money you need to retire in Australia.

Are you planning a retirement in Australia? Get in touch to find out how Jason can help you make the right plans.

Jason O’Connell is an authorised representative (“AR”) of Shartru Wealth Management operating in Australia under AFSL: 422409.

Information on this website is general advice and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.

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