Key considerations for Australian retirees in 2026
Retiring at 70 with $1,000,000 in super? At or past Age Pension age, your entitlements and sustainable income depend on the asset and income tests. This page outlines key considerations and how to model your own scenario for 2026.
The numbers below come from running the same engine used in the Advanced Calculator against every historical retirement period since 1928 — 73 start years in total. Each run uses real year-by-year returns, applies Age Pension year-by-year where eligible, and deducts fees annually.
| Scenario | Income/yr |
|---|---|
| Retirement length modelled | 25 years (age 70–95) |
| Median — half of all historical retirement periods | $81,348 |
| 10th percentile — tough periods (worst 1 in 10) | $66,504 |
| 90th percentile — favourable periods (best 9 in 10) | $97,754 |
| Historical start year | Sustainable income/yr |
|---|---|
| Retiring in 1929 — Great Depression (above median) | $86,523/yr |
| Retiring in 1937 — Pre-WWII downturn | $77,246/yr |
| Retiring in 1966 — 1970s inflation era | $67,090/yr |
| Retiring in 1973 — Oil shock / stagflation | $63,281/yr |
| Retiring in 2000 — Dot-com crash | $64,355/yr |
The single toughest historical period for this scenario: retiring in 1969, when the maximum sustainable income was $58,105/yr.
Why does 1929 show a higher-than-median income? This surprises many readers, but it has a straightforward explanation. Australian share markets fell far less severely than US markets during the Great Depression — the ASX fell roughly 40% peak-to-trough compared to ~90% for the S&P 500. More importantly, a retiree starting in 1929 with a 25-year horizon captured the entire post-WWII economic boom in the later decades of their plan, when compounding had the most impact. The model applies Year-by-year real returns, so the 1930s drag is real — but it is outweighed by the strong decades that followed. Contrast this with retiring in 1966 or 1973, where the first decade brought simultaneous high inflation and poor real returns (stagflation), destroying purchasing power early when the balance was still large.
These figures assume a fixed income strategy (same real income every year). The Advanced Calculator also models dynamic strategies (floor-and-ceiling, Vanguard guardrails) which can improve outcomes. It also accounts for couples, rental income, SMSF assets, and the exact fees you pay.
Generated 11 April 2026. General information only — not personal financial advice.
It depends on your desired income, other assets, whether you're single or a couple, and homeowner status. Preservation age is 60; you can access super now. Sustainable income depends on strategy, time horizon and market path—and from 67, Age Pension may apply. Use the Advanced Calculator to model the Age Pension and historical stress tests for your own numbers.
Based on every historical retirement period since 1928 (73 periods), the median maximum sustainable income for a single homeowner with $1,000,000 at age 70 is around $81,348 per year. In the toughest 10% of historical periods (e.g. retiring into the 1929 depression or mid-1960s inflation) sustainable income was around $66,504/yr. In the best 10% it was around $97,754/yr. These are illustrative outputs under fixed assumptions—not personal advice. Use the Advanced Calculator to model your own numbers.
Run your age, balance, and goals in our Advanced Calculator. It uses 98 years of real market data and models the Age Pension taper.
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