To determine how much you need to grow your investment portfolio to bridge the gap between finishing work early and being able to access your superannuation, you can indeed use a formula or calculator. This involves several steps:

1. Estimate Your Retirement Expenses: Start by estimating how much you will need annually to cover your living expenses in retirement. Consider all costs, including housing, food, healthcare, travel, and leisure activities.

2. Calculate the Gap Years: Determine the number of years between when you plan to retire and when you can access your superannuation funds. For example, if you plan to retire at 55 but can’t access your super until 60, your gap is 5 years.

3. Annual Needs x Gap Years: Multiply your estimated annual retirement expenses by the number of gap years to find out how much total funds you will need to cover expenses during this period.

4. Consider Other Income Sources: If you will have other sources of income during these gap years, such as rental income or part-time work, subtract this from the total required amount.

5. Adjust for Inflation and Investment Returns: Factor in inflation and potential returns from your investments to ensure your calculations remain realistic over time.

For a more tailored approach, using a financial calculator can be very helpful. Pearler offers a Financial Independence Calculator that allows you to input variables such as your savings, super balance, pre-tax income, and other assets. This tool can help you plan effectively by showing you the gap between where you are now and where you want to be, considering your early retirement goal.

By using such tools and methods, you can get a clearer picture of how much you need to grow your portfolio to comfortably bridge the gap until you can access your superannuation. This strategic approach aligns well with Pearler’

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