Compare similar life situations, assumptions, and retirement tradeoffs.
Australia
Housing
Melbourne couple: can you Coast FIRE before 50?
For: Melbourne dual-income couple (36), renters, aiming to Coast FIRE before 50
Can a Melbourne couple ease off saving before 50 without breaking their retirement plan? This comparison shows where Coast FIRE still works, where it gets.
Sydney family: extra super or pay down the mortgage faster?
For: Sydney dual-income family with one child, large owner-occupier mortgage, and spare cash to split between super and debt reduction
Should a Sydney family with spare cash put it into super or use it to ease mortgage pressure sooner? This comparison shows when long-run compounding wins.
One parent going part-time can be worth it for family capacity, but the super gap is not imaginary: in this model, cutting back now leaves the family with about A$552,000 less capital at 67 unless the family later makes catch-up saving explicit.
This scenario is for Australian parents asking questions like "can one parent work part-time in Australia?", "how much super do I lose by going part-time?", and "do childcare savings offset lost income?" It starts in January 2026 with parents age 38, one child still needing paid care, A$180,000 in combined super/invested savings, and home equity excluded from the reported capital.
The household is a national middle-to-upper-middle Australian case, not a Sydney-only stretch budget: think combined full-time gross income around A$190,000, mortgage-sized housing costs, one child in centre-based care, and enough cashflow to save if both careers keep running. The comparison tests three work patterns: both parents stay full-time, one parent drops to 0.6 FTE now, or the family uses a time-limited part-time period and then catches up.
How to read this table: capital means the combined super/invested pool tracked by the simulator. It does not include the family home, home equity, future inheritances, or a separate emergency account outside this model.
Base-return comparison (3.2% real):
Path (Base return)
Savings effort (avg)
Planned spend / buffer-safe spend
Capital at 67
Interest earned by 67
Stay full-time
A$3,321/mo
A$7,200 / A$7,470/mo
A$1,794,966
A$713,566
Catch up later
A$3,312/mo
A$6,900 / A$7,458/mo
A$1,792,142
A$686,902
Part-time now
A$2,284/mo
A$5,000 / A$5,110/mo
A$1,242,847
A$487,487
What to take away: the part-time path is not automatically reckless, but it buys time by accepting a smaller long-run savings engine. The catch-up path matters because it treats reduced hours as a defined life stage, not a vague hope that super will somehow repair itself later. In the base-return output, catch-up later finishes with almost the same capital at 67 as staying full-time, while part-time now arrives about A$552,000 lower.
A compounding gut-check: the stay-full-time base path earns about A$714,000 of cumulative investment interest by retirement, compared with about A$487,000 for the immediate part-time path, even though both start from the same A$180,000. That difference is the hidden cost of lower employer super, lower voluntary contributions, and fewer early dollars compounding for nearly three decades.
The model compresses the household budget into net saving entries rather than pretending to forecast every grocery, rate notice, and insurance renewal. That keeps the focus on the decision the family controls: how much long-term saving remains after the work-hours choice, housing, childcare, school costs, and ordinary family spending.
The research brief anchors the middle case around A$12,302/month of take-home pay when both parents work full-time on about A$190,000 combined gross income. A 0.6 FTE move for the lower earner reduces take-home pay to roughly A$10,489/month before childcare savings. Childcare falls in the part-time paths, but not enough to erase the income loss: one-child out-of-pocket savings are modeled as a few hundred dollars per month, while savings capacity drops by much more.
The recurring child costs are deliberately still present after childcare ends. School-age costs, activities, devices, transport, camps, and uniforms do not disappear just because daycare fees fall. The preset also includes a family car replacement, home refresh, emergency/unpaid-leave reserve, adult-child support, and later-life care reserve so the result is not built on a perfectly smooth budget.
The stay-full-time path protects the savings engine. It assumes the family keeps both careers going through the most expensive child years and saves from a stronger household surplus. The model still charges full-time childcare in the early years, but the higher income and super guarantee base dominate over time.
This path can be the financially strongest version and still be the wrong lived choice if burnout, school logistics, illness days, or outsourcing pressure are already damaging the household. The point is not that staying full-time is morally better; it is that the financial cost of changing hours should be made visible before the family decides.
The immediate part-time path assumes the lower earner moves to roughly 0.6 FTE while the child is young. It reduces childcare out-of-pocket costs and buys more family capacity now, but it also lowers regular super/investment saving in the years when each dollar has the longest time to compound.
This is the most exposed path if part-time work still carries near-full-time expectations, if the parent later struggles to return to higher-paid work, or if a second child, mortgage reset, or job loss arrives before the savings rate has recovered. In the model, this path uses a lower planned retirement budget, which is one reason the end-state capital can still look healthy even without assuming Age Pension support from age 67.
The catch-up path treats part-time work as a defined phase. The family accepts lower savings during the first five years, then writes the recovery plan into the model: contributions return to full-time levels in the 40s and step higher again in the 50s.
That structure is more credible than saying "we will catch up someday." In real Australian planning, catch-up might mean higher voluntary concessional contributions, using unused concessional cap amounts where eligible, spouse contributions, contribution splitting through a fund, or simply redirecting school-fee and childcare relief once cashflow improves. The simulator does not decide which account is best; it shows whether the cashflow promise is large enough to matter.
Start by changing the part-time income assumption, not the investment return. If the lower earner would move to 0.8 FTE rather than 0.6 FTE, the income and employer-super gap is much smaller. If the role pays less per hour after the shift, or if promotion momentum stalls, the model should be harsher.
Then adjust childcare. The research brief uses Centre Based Day Care fee caps and recent average fees as anchors, but real session lengths, above-cap fees, absence days, family income, and second-child rules can move the out-of-pocket number quickly. A family with only one child near the hourly cap may save far less from dropping days than expected.
Next, edit the retirement income line. The Age Pension is means-tested and household-specific, so this preset does not assume pension income from age 67 in any branch. If your expected assessable assets are much lower than the modeled outcomes, add a delayed or reduced pension line only after checking the current means tests.
When you open the preset, the fastest high-signal edits are:
Replace Super and investing with your actual employer super plus voluntary contributions.
Change Childcare out-of-pocket to match your provider, days, and subsidy position.
Add a second-child care period if that is realistic for your family.
Stress-test the part-time path with lower wage growth for the reduced-hours parent.
Change Retirement spending if you expect rent or a mortgage to continue after 67.
Super guarantee is tied to paid earnings. The research brief uses the 12% super guarantee from 1 July 2025, so reducing ordinary time earnings directly reduces employer super before investment growth.
Child Care Subsidy softens but does not erase the trade-off. At the income levels modeled here, lower paid-care days can save real money, but the expected saving is much smaller than the full take-home-pay reduction from moving to 0.6 FTE.
Catch-up tools are eligibility-dependent. Carry-forward concessional contributions, spouse contributions, contribution splitting, and salary sacrifice all depend on caps, income, total super balance, fund rules, and tax position. Treat them as levers to investigate, not automatic benefits.
This page tracks combined household capital. The fairness issue is still real: the lower-hours parent may carry the individual super gap even if the household looks fine in aggregate.
This scenario is an educational model, not financial advice. It simplifies tax, superannuation rules, Child Care Subsidy calculations, Age Pension means testing, home equity, employer benefits, and family spending patterns so you can compare trade-offs and then verify the details with current official guidance.