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Our team of financial experts help you navigate to and through retirement in this six-part series. See all stories.<\/a><\/p>\n It\u2019s a figure that can fixate people during their careers: the \u201cmagic retirement number\u201d, a dollar amount that allows you to farewell work forever.<\/p>\n But it\u2019s something of a financial myth, or at least a misconception, according to experts, who say a one-number-fits-all formula simply doesn\u2019t exist.<\/p>\n \u201cThe magic retirement number is not so much a single dollar figure or balance target, it\u2019s more about the level of income you want in retirement for as long as your retirement lasts,\u201d explains Aware Super\u2019s general manager guidance and advice Peter Hogg.<\/p>\n \u201c[Instead] we encourage our members to think about retirement income and how confident you are that you\u2019ll achieve it, rather than chasing a magic super balance.\u201d<\/p>\n Related Article Jenny Brown, CEO and founder of JBS Financial Strategists, notes that even with identical incomes, no two retirement targets are the same.<\/p>\n She recommends a simple litmus test: can you live off five to six per cent of your total capital per year?<\/p>\n \u201cIf that\u2019s not enough,\u201d Brown warns, \u201cthat means you\u2019re going to be eating away at your capital, so your retirement number needs to be more.\u201d<\/p>\n The test for financial freedom Both experts suggest considering any big purchases or outlays as well.<\/p>\n \u201cWhat are the lump sums that you\u2019re going to be pulling out? Things like travel, will you renovate, do you need a new car, are you going to gift to the kids, do you want to leave a legacy? All of that,\u201d Brown explains.<\/p>\n There\u2019s also the fact that your retirement spending will change over time, from those initial outlays to eventual aged care.<\/p>\n \u201cFor many people, spending can actually be higher in those early years of retirement. You\u2019re more active than you might have been when you were working; you might be travelling a lot,\u201d explains Hogg.<\/p>\n \u201cWe\u2019re talking 30-plus years, potentially, that you need to factor in and consider as part of your analysis.\u201d<\/p>\n Tapping into tax-free income<\/p>\n A vital but often overlooked strategy, especially for those still working, is converting superannuation into retirement income.<\/p>\n \u201cAt 65, why pay tax on the earnings within your super?\u201d says Brown. \u201cTurn it into an account-based pension and then your earnings [and income are] tax-free.\u201d<\/p>\n Of course, the age pension is another consideration. \u201cThe pension plays a really significant role in retirement for most Australians and that\u2019s why it\u2019s a key part of your retirement plan,\u201d says Hogg.<\/p>\n Related Article \u201cFor most retirees, a combination of some age pension and some super income results in higher total retirement income than relying solely on one source.\u201d<\/p>\n Surprisingly, however, many people don\u2019t apply for the pension as soon as they should, he adds.<\/p>\n \u201cAware Super research has found almost one-third of Australians waited 12 months or more after turning 67 to apply for the pension, meaning they were missing out on an average of $18,000 in benefits.\u201d<\/p>\n It\u2019s clarity over these two income strands – super and the age pension – that gives you the best idea of when to retire.<\/p>\n \u201cFor most people, part of their retirement income comes from drawing down on their super balance as they age, but as your balance reduces, your aged pension entitlement usually increases, helping to smooth out changes to your income,\u201d says Hogg.<\/p>\n Smart investing and self-education<\/p>\n Smart investing is the final piece of the puzzle. It pays to check exactly how your fund is managing your balance; for instance, Aware Super\u2019s MySuper Lifecycle<\/a> model adjusts investment risk automatically as you approach retirement.<\/p>\n Brown also recommends a deep dive into the wide range of resources available today. \u201cEducate yourself,\u201d she insists, pointing to the wealth of literature and podcasts now at our fingertips.<\/p>\n These readily available resources also mean navigating the path to retirement no longer requires as much guesswork. Free digital services – including the\u00a0Moneysmart website<\/a> and super fund calculators – can offer a detailed view of financial readiness.<\/p>\n Ultimately, retirement isn\u2019t about a \u201cmagic number\u201d. Equipped with clear insights and well-defined goals, it all comes down to the right strategy for you.<\/p>\n Advice given in this article is general in nature and is not intended to influence readers\u2019 decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.<\/p>\n Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n![\"Data](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/174d288f0417331db837d4d4527b62aad079a80608a698808b563f122d7e7112.jpeg\")
Data and planning are key to working out when you can retire. iStockWhy the \u2018Magic Number\u2019 is a myth<\/p>\n![\"Retirement](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/9ce0ea479730e56b75e2cf3ac546137fd9112c86.jpeg\")
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Aware Super\u2019s Peter Hogg<\/p>\n![\"Retirees](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/b46168421f0bb337cfb762421abe62b32c775b93.jpeg\")
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No two retirement targets are the same, says Jenny Brown. <\/p>\n