![]() I have been digging deep in trying to understand where the difference comes from – because my calculator shows future values and yours shows present values, it is not very easy to work out. And also, the super balance would not last as long as what your calculator suggests. When I use your example values saved in the FIRE calculator, in my calculation the money would run out too early during the FIRE period before gaining access to super at 60. I downloaded your calculator the other day, and I then made a yearly count-down to see how the balances would work year by year using inflation adjusted future values. I will send you updated revisions of it ever time I fix a bug or the laws in Australia change. It’s a work in progress. If you find a flaw please let me know and I’ll try to fix it.Įnter your email address and not only will I send you the calculator. The calculator works out how many years it’s going to take you to reach your Pre Super number and then does some cool math and works out that you need a certain amount in your Super for it to grow into your FI number the year you can access it. But no sooner than that, because that is the most efficient and fastest way to reach FIRE. Your FI number will be reach in your Super account at the very start of your preservation year. Your Super number is not actually your FI number.This means that 100% of your after tax income will be going into your Super account until you reach your Super Number. When you have reached your Pre Super number you theoretically should be able to live entirely off that number until preservation age (assuming all conditions stay the same). The pink arrow indicates the time you have reached your Pre Super number.This will move slowly up (depending on how much Super you have) over the years as your super grows from compounding interest until you hit the pink arrow. The green part of the line indicates how much Super you currently have at the start.Have enough in Super to cover all your living expenses forever! You will notice that the red line (Super) has a number of dips. You want your Pre Super number to be at $0 when you access your Super. It’s only meant to last you until when you hit your preservation age and can then access your Super. You will notice in the above graph that your Pre Super number goes up and up and up…and then slowly tapers off past $0. Step 1 is not meant to last you forever though. No matter how much you have in your Super, you won’t be able to retire early and pursue your other goals in life if you don’t have money coming in to live off. Have enough money to survive until your preservation age (when you can access Super). In a nutshell, the most optimal way to reach FIRE here in Australia is to: The Super number is obviously what’s in your Super. The Pre Super number is what you will be living off until you can access your Super. You will notice there are two lines in the graph. The above are two screen shots from the calculator showing the basic settings and the graph that it generates. ![]() Introducing The Australian Financial Independence Calculator You’re not likely to beat the 15% tax breaks on your Super.īut I don’t want to put money into Super because I want to retire young! And I won’t be able to touch the money until my preservation age (60 for me). So what’s one to do? Do I just keep plugging away at my personal portfolio until I reach my FI number? That seems like a waste since Super has such a big tax advantage. But because you can’t access your Super before your preservation age (99% of the time) you end up with two. Your Super portfolio and a portfolio outside of it. To put it simply, in the US you only need one portfolio to be at a certain amount before you are considered FI. The US system, which is the main system upon which I found almost all of the calculators accounted for, has a fundamentally different way their citizens can withdraw from their retirement accounts. The biggest issue I had with every single one of these FIRE calculators out there was they didn’t factor in our Super system. One of the main reasons I created this site was to offer my fellow countrymen quality information that was tailored for an Australian audience. But the longer I searched for the best calculator the longer I realised that they were all geared towards other countries. I’ve often come across really clever, well developed calculators that offer a really good visualisation on how long you have to go before you reach FI. There are countless sites/articles/forums about financial independence (FI) on the world wide web.
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