FIRE calculator for Australia
Australian plans have a strong compulsory pillar in superannuation and a hard access rule in front of it. That makes the outside-super pot the centre of any early retirement plan.
Open an investment account
We explain exactly what to compare before you open anything - costs, protection and the traps.
Inside super and outside super
Superannuation is preserved until a set age, so it cannot fund the early years no matter how large it grows. Early retirement therefore needs a separate portfolio outside super to bridge the gap.
Many plans deliberately build the outside pot to cover spending until preservation age, then let super take over. Concessional contributions still make sense for the tax treatment - they just cannot be the bridge.
Franking credits and returns
Australian dividend imputation raises the after-tax return on domestic shares for many investors, which is one reason local plans sometimes assume a slightly higher net return than comparable overseas plans.
Do not lean on that too hard. A diversified portfolio with international exposure is still the usual recommendation, and concentration risk in a single market is real.
Frequently asked questions
When can I access my super?
Not until preservation age, which depends on your birth year and has been changing. Confirm the current rule before assuming a date.
How much do I need outside super?
Enough to cover annual spending from your retirement date to preservation age. Multiply your annual spending by the number of bridge years, then add a margin.
Is 4% safe in Australia?
Local studies generally suggest a slightly lower rate for long horizons. Many Australian plans use 3.5-3.75%.
Should I salary sacrifice into super?
The tax treatment is attractive for most earners, but money in super cannot fund an early retirement. Balance the two pots against your target date.
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