How much super do you need to retire comfortably in Australia? A 2026 guide for high-income Australians with $1.5M–$4M in super, covering sustainable income, tax strategy and retirement planning.
Introduction
For most Australians approaching retirement, the real question isn’t “Can I retire?” It’s: Will I be able to maintain my lifestyle without compromise? For households with $1.5 million to $4 million in superannuation, the conversation shifts away from Age Pension eligibility and toward sustainable retirement income, tax efficiency and long-term capital preservation. A confident retirement isn’t just about having enough assets — it’s about having a well-structured plan, the right level of investment risk for you, the discipline to stay consistent through market cycles, and the understanding to make good decisions when things change. That’s what turns “comfortable” into confident.
What Does ‘Comfortable Retirement’ Mean for High-Income Australians?
Many retirement articles reference ASFA benchmarks. Those figures are useful — but they are built around average Australians. They are not designed for senior executives, business owners or professionals earning $250,000+ per year. For affluent retirees, typical capital requirements are:
• $120,000 per year after tax → ~$1.8M–$2.2M super required
• $150,000 per year after tax → ~$2.4M–$3.0M super required
• $200,000+ per year → $3.5M+ super required
(Assumes mortgage-free home and long-term return assumptions of 5–6%.) Lifestyle drives capital needs — not the other way around. Again your understanding of risk plays a very important role in how your retirement will look.
Why the 4% Rule Is Too Simplistic
Many investors reference the 4% withdrawal rule. While useful conceptually, it ignores tax differences between pension and accumulation phase, sequencing risk, changing spending patterns and longevity beyond age 90. A refined strategy often begins between 4%–5.5% depending on structure, risk tolerance and tax positioning between spouses.
Understanding Sequencing Risk in Retirement
Sequencing risk is basically the risk of hitting a bad run of markets around the time you retire, especially in the first few years when you’ve started drawing income. That early timing matters a lot, but similar risks can also show up later in retirement and affect how long your savings last. If markets fall early and withdrawals continue, the portfolio may suffer permanent damage. Mitigation strategies include maintaining defensive buffers, flexible withdrawals and appropriate asset allocation calibration.
Tax Strategy: The Transfer Balance Cap Matters
From 1 July 2025, the general Transfer Balance Cap is $2.0 million per person. For couples, up to $4.0 million combined may sit in tax-free retirement phase pensions. Earnings in pension phase are tax-free and capital gains tax does not apply within pension phase. Failing to equalise balances prior to retirement can result in unnecessary 15% tax on earnings in accumulation.
Longevity Risk: Planning for 30+ Years
For a 60-year-old couple, there is a strong probability one partner will live into their 90s. Retirement capital may need to last 30–35 years. Planning should incorporate conservative return assumptions, healthcare contingencies and spending flexibility but also what’s super important is to make sure you are invested for a good long term outcome and in line with market progression.
Example: $2.8M Retirement Scenario
Consider a 62-year-old couple with $2.8M in super and a mortgage-free home targeting $150,000 annual spending. Without structured advice: 5% drawdown equals $140,000 with limited sequencing protection. With structured planning: equalised pension balances, calibrated withdrawal rate and defensive buffer. The difference compounds significantly over 25 years.
How Much Super Is Enough?
General guidance for high-balance households: $1.5M–$2.0M offers comfort with discipline; $2.5M–$3.0M offers flexibility; $3.5M+ provides high optionality and legacy capacity. Structure and tax positioning often matter more than headline balance size.
Retirement Planning in Australia: Why Structure Matters
Accumulation and decumulation are different disciplines. The final 5–10 years before retirement offer the most powerful planning window for contribution sequencing, pension timing and risk calibration.
How EPG Wealth Helps
At EPG Wealth, we tailor your strategy, level of service, and fees to your risk profile, financial knowledge, and how involved you want to be — so you receive the right level of support and value without paying for complexity you don’t need. Our advice is data-driven and focused on managing sequencing and longevity risk, with estate planning integrated into your broader retirement strategy.
We specialise in helping high-income Australians transition into retirement. If you’re within 5–10 years of retiring and want clarity on whether you’re on track, click here to organise a complimentary 20-minute phone call with an EPG Wealth adviser.
Explore more articles