Yes, you can retire at 60 with $350k in super in Australia but it won’t be a “set and forget” kind of retirement. With thoughtful planning, disciplined spending, and smart use of the Age Pension, it’s possible to make your money last and still enjoy a modest, fulfilling lifestyle.
What Happens Financially at 60?
At age 60, you’ve reached your preservation age, which means you can access your super tax-free if you’re retired. But you’ll need to fund your living expenses on your own for 7 full years until you qualify for the Age Pension at age 67.
That means you’ll rely heavily on your super during this early phase. If managed well, $350,000 can help you cross this gap and still leave a buffer for the later years when government support kicks in.
What Retirement Costs Look Like in Australia
Based on the ASFA Retirement Standard (March 2024):
- Modest lifestyle (single): ~$32,000/year
- Comfortable lifestyle (single): ~$51,000/year
These estimates assume you:
- Own your home
- Use public healthcare
- Live independently
💡 On $350k, you’ll likely need to spend under $30,000 per year in the early years. That’s very doable if you reduce discretionary spending, claim all eligible concessions, and avoid unnecessary withdrawals.
How Long Will $350k Last?
Here’s a sample projection:
- Annual drawdown: ~$29,000
- Investment return: 3% annually
| Age | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $350,000 | $29,000 | $9,600 | $330,600 |
| 61 | $330,600 | $29,500 | $8,900 | $310,000 |
| 62 | $310,000 | $30,000 | $8,100 | $288,100 |
| 63 | $288,100 | $30,500 | $7,300 | $264,900 |
| 64 | $264,900 | $31,000 | $6,400 | $240,300 |
| 65 | $240,300 | $31,500 | $5,400 | $214,200 |
| 66 | $214,200 | $32,000 | $4,300 | $186,500 |
| 67 | $186,500 | $10,000 | $5,300 | $181,800 |
✅ This leaves you with $180k+ when you begin receiving the Age Pension.
What Happens at Age 67?
You become eligible for the Age Pension, provided you meet income and assets tests. With your super balance now lower (due to drawdowns), you’re more likely to qualify for full or part pension.
Current full pension (July 2024):
- Single: ~$29,000/year
- Couple (combined): ~$43,800/year
The Age Pension now becomes your main income source, and your remaining super can supplement it helping stretch your funds well into your 80s or 90s.
How to Make Retirement Work on $350,000
✅ 1. Own Your Home
Paying off your home before retiring is critical. Without rent or mortgage payments, your fixed costs drop dramatically, freeing up more money for essentials.
✅ 2. Set Up an Account-Based Pension
Roll your super into a pension account that pays you regular income. It’s tax-free after 60 and more sustainable than lump-sum withdrawals.
✅ 3. Spend Below the Modest Lifestyle Benchmark
Aim to live on ~$28,000/year instead of $32,000. Take advantage of health concessions, free public services, and senior discounts.
✅ 4. Keep Growth in Your Portfolio
Hold part of your super in balanced or income-producing funds. This helps your money grow and beat inflation while keeping enough in cash for 1–2 years of spending.
✅ 5. Work Casually (If Possible)
Even 5–10 hours/week of casual work can extend your super’s life, reduce drawdowns, and improve your Age Pension eligibility later.
What Kind of Lifestyle Can You Expect?
| Category | Expectation |
|---|---|
| Housing | Must own your home |
| Healthcare | Public system with some private extras |
| Travel | Local and budget trips only |
| Discretionary Spend | Low, but possible with planning |
| Financial Security | Modest, but achievable with discipline |
Mistakes to Avoid
- Withdrawing large lump sums early
- Overestimating investment returns
- Forgetting to plan for health & inflation
- Delaying Centrelink paperwork for Age Pension
- Not speaking to a professional planner
Ready to Retire at 60? Wealthlab Can Help
At Wealthlab, we specialise in helping Australians with modest super balances retire confidently.
Let us help you:
✔️ Structure your super drawdowns
✔️ Model your retirement income year-by-year
✔️ Maximise Age Pension eligibility
📞 Book a consultation today to map out your next steps
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