If you’ve ever Googled “how much do I need to retire in Australia,” you’ve met the single most important number in personal finance — and probably left more confused than when you started. Let’s make it simple.
Your GLOW number is the amount of invested wealth that makes paid work optional. Not the biggest number you could chase — the number that’s enough.
The simple formula: annual expenses × 25
Take what you expect to spend in a year and multiply it by 25. That’s your GLOW number — the portfolio that could, historically, cover those expenses indefinitely. Spend $70,000 a year and your number is about $1.75m.
Why 25×? The 4% rule, explained for Australians
The multiplier comes from the 4% rule: withdraw around 4% of a diversified portfolio in your first work-optional year, adjust for inflation after that, and history suggests a strong chance the balance lasts 30 years or more. And 4% is simply 1 ÷ 25.
Your GLOW number isn’t your maximum. It’s the point where work becomes a choice.
Finding your real ‘enough’ number
The honest part is the input — your annual expenses in a work-optional life. Not what you spend today, but what you’d spend in the life you’re actually building toward. Take a real 12-month look at your spending, then adjust.
Don’t forget the Australian super bridge
Your nest egg usually sits in two buckets: money you can touch now (shares, ETFs, savings) and money locked in superannuation until your preservation age. Many Australians reach work optional by building assets outside super first, then let super and the Age Pension carry the later years.
How close are you, really?
Most people have never actually run the numbers. Once you see your real number and trajectory, the fog lifts. Use the GLOW Number calculator to find yours in about 30 seconds.
Frequently asked questions
How much do I need to retire in Australia?
A common rule of thumb is 25 times your annual expenses. If you expect to spend $70,000 a year, that points to roughly $1.75m — your GLOW number. Super and the Age Pension can lower the amount you personally need to fund.
What is the 4% rule?
The 4% rule suggests you can withdraw about 4% of your invested portfolio in the first year, adjusting for inflation after that, with a strong historical chance the money lasts 30+ years. Multiplying expenses by 25 is the same idea in reverse.
Does my superannuation count toward my GLOW number?
Yes — super is part of your total nest egg, but you generally cannot access it until preservation age. Many Australians reach work optional by building assets outside super first, with super topping things up later.
This article is general information only and does not take account of your personal circumstances. It is not financial advice.