If you’re approaching 60 with $320,000 in super, you may be wondering: is this enough to retire comfortably in Australia? The good news is that retiring at 60 with $320K is possible, but it requires careful planning, disciplined budgeting, and strategic use of your super to last until the Age Pension kicks in at 67.
What Happens Financially at 60?
At age 60, you reach your preservation age, meaning you can access your super tax-free if you’ve retired. However, you still have a 7-year gap before Age Pension eligibility, during which your super must fund housing, food, healthcare, bills, and other living expenses.
With $320K, your annual withdrawals need to be modest around $25,000–$28,000 per year to ensure your super lasts until government support becomes available. Careful planning, budgeting, and strategic investment are critical during these early retirement years.
Retire at 60 with $320K: What Retirement Costs Look Like
According to the ASFA Retirement Standard (March 2024):
- Modest lifestyle (single): ~$32,000/year
- Comfortable lifestyle (single): ~$51,000/year
These figures assume you own your home, use public healthcare, and manage living expenses independently. With $320K, living slightly below the modest benchmark around $25,000–$28,000 per year will make your super last longer and reduce financial stress until Age Pension eligibility.per year is realistic especially if you eliminate rent and minimise discretionary spending.
How Long Will $320k Last?
Assuming:
- Spending: ~$28,000/year
- Investment returns: 3% p.a.
- Access from age 60
Your $320k can last roughly 11–12 years, getting you close to Age Pension age and leaving a modest buffer for later years.
If you reduce annual spending to ~$26,000 or work part-time until 62–63, your super may stretch much further and support a smoother transition into full pension support.
What Happens at Age 67?
Once you reach 67, Age Pension eligibility begins, subject to assets and income tests:
- Single: ~$29,000/year
- Couple (combined): ~$43,800/year
This income reduces reliance on your super, helping your funds last longer and providing financial security for later retirement years .
This Line Chart Showing how $320K depletes from ages 60 to 90 under $20K, $25K, and $30K/year spending levels.
Retire at 60 with $320K: Smart Strategies
1. Own Your Home
Housing is typically your largest expense. Owning your home outright frees up your super to cover essentials, reducing financial stress and increasing security.
2. Use an Account-Based Pension
Convert your super into a tax-free, regular income stream. This preserves capital while providing reliable cashflow for living expenses.
3. Balance Growth and Stability
Hold a diversified portfolio: part in low-risk, income-generating assets and part in conservative growth investments. This protects your super from inflation and market volatility.
4. Stick to a Modest Budget
Limit annual spending to $25,000–$28,000 in the early years. Take advantage of concessions, public services, and cost-saving strategies.
5. Consider Part-Time or Casual Work
Even a small side income can reduce withdrawals from super, extend your retirement funds, and support mental and social well-being.
Common Mistakes to Avoid
- Overspending in the first few years of retirement
- Ignoring inflation or healthcare costs
- Drawing large lump sums too early
- Failing to plan for the 60–67 income gap
- Neglecting professional financial advice
FAQs: Retire at 60 with $320K
Q1: Can I retire at 60 with $320K in Australia?
Yes, it’s possible, but success depends on careful budgeting, owning your home, and drawing your super strategically until Age Pension eligibility.
Q2: How long will $320K last?
With conservative withdrawals and investment growth, $320K can cover living costs for 7+ years until the Age Pension, and potentially last 20+ years combined with pension income.
Q3: Can I retire earlier than 60?
You can, but you’ll need additional savings outside super to cover expenses until you can access super at 60.
Q4: How should I invest my super at 60?
A balanced mix of conservative growth and income-generating assets is recommended, preserving capital while providing returns.
Can I Retire with $670K in Australia?
If you want to explore slightly higher super balances, see our article: Can I Retire with $670K in Australia? it provides detailed strategies for managing a larger retirement fund effectively.
Plan Your Retirement with Wealthlab
At Wealthlab, we help Australians retire smarter, regardless of your super balance. We assist with budgeting, super drawdowns, investment strategy, and Age Pension optimisation.
📅 Book your free retirement consultation today and ensure your $320K works hard for your financial security and peace of mind.