FIRE Calculator for Australia

Australian FIRE planning has a structural challenge that does not exist in most other countries - the super lock-in. With superannuation inaccessible until preservation age (60 for most), anyone pursuing early retirement needs two separate pools of money. The non-super portfolio covers living expenses from the FIRE date until 60, and super takes over from there. This two-bucket approach is the defining feature of Australian FIRE strategy.

Medicare removes one of the largest barriers to early retirement that exists in the US. Basic healthcare coverage continues regardless of employment status, funded through the Medicare levy paid during working years. Private health insurance is optional for basic coverage, though the lifetime health cover loading means delaying private cover can increase premiums later. For FIRE planning purposes, healthcare costs are still worth budgeting for - prescription medications, dental, and optical add up - but the baseline is dramatically lower than in countries without universal coverage.

The Age Pension from 67 provides a floor of income that reduces the long-term portfolio requirement. Someone who reaches age 67 with assets below the full pension threshold receives approximately $30,000 per year from the government. Even a partial pension provides meaningful support. This means the post-67 phase of retirement requires less from personal investments, and the overall FIRE number can be smaller than the simple 25x annual expenses calculation would suggest.