FIRE & early retirement · 2026 · Updated July 2026
FIRE in Australia: your number, and the catch nobody prices in
The standard FIRE number is 25× your annual spending (a 4% withdrawal rate): $1.5 million for a $60,000 lifestyle. The uniquely Australian catch is that super — often half your wealth — is locked until 60, so retiring at 45 means your outside-super investments alone must carry 15 years. That bridge, not the headline number, is what usually decides the plan.
Run your FIRE number → — Or model the super bridge properly with Super FIRE
FIRE numbers at a glance
The 4% rule comes from US research on 30-year retirements; a 45-year-old planning a 45-year retirement should lean toward 3.5% or lower. Every 0.5% shaved off the withdrawal rate adds about 14% to the required portfolio — the price of safety margin.
| Annual spending | 4% rule (25×) | 3.5% (safer, 28.6×) |
|---|---|---|
| $40,000 (lean) | $1,000,000 | $1,140,000 |
| $60,000 | $1,500,000 | $1,710,000 |
| $80,000 | $2,000,000 | $2,290,000 |
| $100,000 (fat) | $2,500,000 | $2,860,000 |
The super bridge: Australia's FIRE constraint
Split your FIRE number into two pools. Super is tax-advantaged (15% on contributions and earnings, 0% in pension phase) but untouchable until 60. Outside investments are fully flexible but fully taxed. Retire at 50 spending $60,000 and you need roughly $600,000+ outside super just to bridge to 60 — before considering whether total wealth hits the headline number.
This flips the usual optimisation: aggressive salary sacrifice minimises lifetime tax but starves the bridge. The Super FIRE calculator simulates both pools year by year and tells you whether the bridge holds, which the generic 25× arithmetic cannot.
What Australians get that US FIRE blogs miss
- Medicare removes the health-insurance cliff that dominates US early-retirement planning.
- The Age Pension acts as a longevity backstop from 67 — even a part pension materially de-risks the final decades.
- Franking credits and the 50% CGT discount shape how outside-super portfolios are best drawn down — real effects the flat 4% rule ignores.
Common questions
Does my FIRE number include super?
Count super toward the total, but test the bridge separately: outside-super assets must cover every year between your retirement age and 60 on their own. A plan can pass on total wealth and fail on the bridge — that's the most common error in Australian FIRE plans.
Is the 4% rule safe for a 40-year retirement?
Historically it survived most but not all long horizons; sequence-of-returns risk (bad markets early) is the killer. Common mitigations: withdraw 3.25–3.5%, keep 2–3 years of spending in cash, or stay flexible about spending cuts and part-time income in bad years.
Should I include my home?
Not in the portfolio — it doesn't generate withdrawable income. But owning it outright cuts your annual spending (no rent), which cuts your FIRE number by 25× the saved rent. Paying off the home is FIRE progress; counting its value as portfolio is double-dipping.
What about the Age Pension?
From 67, the pension (means-tested) can cover a substantial share of a modest retirement. Most FIRE plans treat it as a backstop rather than a pillar — but pricing it at zero, as US-style calculators do, meaningfully overstates what Australians need.