Retirement Gap Calculator
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Projected vs Required Balance
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Breakdown
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Understanding Your Retirement Gap
Your retirement gap is the difference between where your current savings trajectory will take you, and what you'll actually need to fund your desired retirement lifestyle.
The 20x Rule (5% Withdrawal Rate)
A common rule of thumb is that you need approximately 20 times your desired annual income saved by retirement, based on a sustainable 5% annual withdrawal rate. Some planners use the more conservative 25x rule (4% withdrawal rate) for additional safety margin.
Closing the Gap
- Increase concessional super contributions (salary sacrifice or personal deductible contributions)
- Delay retirement by even 2-3 years for significant compounding benefit
- Reduce planned retirement spending
- Consider additional investments outside super
Projections assume 7% p.a. investment returns and do not account for inflation, fees or taxes. Not financial advice.