Can I Retire at 60 with $250K ,yes you can . Retiring at 60 is a dream for many Australians. But with only $250,000 in super or savings, is it realistic?The answer is yes — but it requires discipline, smart planning, and a modest lifestyle. You’ll need to cover your own expenses for the seven-year gap between retirement and Age Pension eligibility, but with the right strategy, $250k can get you there. In this guide, we break down how long $250k could last, what kind of lifestyle it supports, and how to retire early without running out of money.
What Happens Financially at Age 60?
In most casAge 60 is a key milestone:
- You can access your super tax-free if retired.
- You’re still 7 years away from the Age Pension, which begins at 67.
- You can set up an account-based pension to draw regular income.
But from 60 to 67, you’re on your own financially. This is the critical period where budgeting and strategy matter most.
Understanding Retirement Living Costs
According to the ASFA Retirement Standard (March 2024):
- A modest lifestyle (single): ~$32,000/year
- A comfortable lifestyle (single): ~$51,000/year
These estimates assume home ownership and rely on public healthcare. A modest lifestyle covers basic needs — food, housing, bills, transport — without overseas travel or luxury extras.With $250,000, you’ll likely be aiming below the modest standard, especially during the 60–67 pension gap.
How Long Will $250,000 Last in Retirement?
Assuming:
- Annual spending: ~$28,500–$31,000
- Annual return: ~3%
| Age | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $250,000 | $28,500 | $6,600 | $228,100 |
| 61 | $228,100 | $29,000 | $6,100 | $205,200 |
| 62 | $205,200 | $29,500 | $5,400 | $181,100 |
| 63 | $181,100 | $30,000 | $4,800 | $155,900 |
| 64 | $155,900 | $30,500 | $4,000 | $129,400 |
| 65 | $129,400 | $31,000 | $3,100 | $101,500 |
| 66 | $101,500 | $31,500 | $2,000 | $72,000 |
| 67 | $72,000 | $10,000 | $2,000 | $63,500 |
This projection shows that $250k can cover a modest retirement from 60 to 67, while still leaving you a buffer when Age Pension begins.
What Happens at Age 67?
You become eligible for the Age Pension, subject to asset and income tests.
July 2024 Pension Rates:
- Single (full rate): ~$29,000/year
- Couple (combined full rate): ~$43,800/year
At this point, your lower super balance may help you qualify for the full or part pension, easing your reliance on savings going forward.
How to Make Retirement Work on $250,000
1. Own Your Home
Owning your home removes your biggest living expense. No mortgage or rent means your basic costs drop dramatically — allowing your $250k to stretch further. If you’re still paying off a home loan, consider delaying retirement until it’s fully paid. Housing stability is key to retiring on a tight budget.
2. Set Up an Account-Based Pension
Rolling your super into a tax-free income stream provides structure and control. It allows you to receive regular payments and avoid drawing down too quickly. You can choose flexible payment amounts and investment options to suit your risk tolerance helping smooth income across retirement.
3. Spend Below the ASFA Modest Standard
If you can live on $26,000–$28,000 per year, your savings will last longer and give you more stability. Use public healthcare, take advantage of discounts, and minimise big discretionary purchases. Cutting even $2,000–$4,000 per year from your budget now can buy peace of mind later.
4. Maintain Growth in Your Super Investments
Don’t shift all your super to cash. Consider keeping 30–50% in conservative or income-focused funds. These give you gentle growth that offsets inflation without risking major losses. Hold 1–2 years of living expenses in cash for emergencies or down markets this balanced approach helps sustain your funds.
5. Add Side Income (If Possible)
Even part-time work between 60 and 63 can help delay super drawdowns. Earning just $10,000 a year through casual, freelance, or consulting work may preserve your super for longer and improve your Age Pension eligibility later. It can also keep you socially active and mentally sharp.
What Lifestyle Can You Expect on $250,000?
| Category | Expectation |
|---|
| Housing | Must own your home |
| Essentials | Covered with modest budget |
| Travel | Domestic trips; limited overseas options |
| Healthcare | Public system; minimal private extras |
| Discretionary Spend | Moderate to low; careful budgeting needed |
Common Mistakes to Avoid
- ❌ Withdrawing too much from super early
- ❌ Assuming the Age Pension starts at 60
- ❌ Underestimating cost-of-living or inflation
- ❌ Ignoring investment structure and asset mix
- ❌ Not seeking personalised financial guidance
Graphic
This Line Chart Showing how $250K depletes across 30 years at $20K, $25K, and $30K annual spending.
Planning to Retire on $250k? Wealthlab Can Help
At Wealthlab, we specialise in helping Australians with modest balances retire confidently and sustainably. Whether you’re just starting your journey or looking to restructure your income stream, we’re here to help.
✔️ Retirement income planning
✔️ Superannuation drawdown strategies
✔️ Age Pension eligibility support
📞 Book your free consultation today
🔗 Talk to a Wealthlab Retirement Planner