$240,000 in super at 60 is a position that more Australians are in than the benchmarks suggest is acceptable. The national average for women aged 60 to 64 is approximately $313,000 and for men $396,000. At $240K you’re below both, but you’re not in territory where retirement is impossible. You’re in territory where the structure matters as much as the balance.
Here’s what $240K actually funds, how the seven-year bridge to the Age Pension works, and what your real options are.
Can You Access Super at 60?
Yes. Preservation age in Australia is 60 for anyone born after 1 July 1964. Once you retire or cease an employment arrangement, your full $240,000 is accessible tax-free. Withdrawals from a taxed super fund after age 60 attract zero income tax on lump sums or income stream payments.
The first structural decision that costs nothing but matters immediately: convert your super from accumulation phase to pension phase on day one of retirement. In accumulation, investment earnings are taxed at up to 15%. In pension phase they are completely tax-free. This does not happen automatically. Contact your fund and initiate an account-based pension before your last day of work.
Source: ATO: Super withdrawal options (Current as at May 2026)
Please note: All figures, projections and scenarios in this article are for general illustration only. Individual outcomes depend on personal circumstances, spending levels, investment returns, fees and government policy. This is general information, not personal advice.
How Long Will $240,000 Last? The Numbers at Every Spending Level
Using a net annual return of 5% after fees and investment tax in a balanced account-based pension:
| Annual spending | Balance at age 67 | Age Pension status at 67 | Notes |
|---|---|---|---|
| $15,000/yr | ~$171,000 | Full pension | Very lean, part-time income almost essential |
| $20,000/yr | ~$122,000 | Full pension | Workable for a homeowner with no debt |
| $25,000/yr | ~$74,000 | Full pension | Balance largely supplementary from 67 |
| $30,000/yr | ~$29,000 | Full pension | Nearly depleted by 67, reliant on pension |
| $35,000/yr | Depleted ~65 | Not yet eligible | Runs out before pension age |
The most important row is the last one. At $35,000 per year spending, $240K runs out before you turn 65. You’d face two years with no super and no Age Pension before government support begins at 67. This is not a planning disaster if you see it coming and have other income or assets. But it’s a genuine risk for anyone who retires at 60 with $240K and has no spending discipline during the bridge years.
At $20,000 to $25,000 per year, the bridge works. You arrive at 67 with $74,000 to $122,000 in super, well below the full pension threshold of $321,500 for a single homeowner. The full Age Pension of approximately $29,000 per year begins immediately.
Source: Services Australia: Age Pension (Current as at May 2026)
The Seven-Year Bridge: The Central Challenge at $240K
Retiring at 60 means seven full years before Age Pension eligibility at 67. At $240K, that bridge is tighter than at $300K or $350K. There is genuinely less room for error.
At $22,000 per year over seven years, you draw approximately $154,000. On $240K growing at 5%, that leaves approximately $100,000 at 67. Well within full pension territory. From 67: $29,000 Age Pension plus $8,000 to $10,000 super drawdown equals approximately $37,000 to $39,000 total annual income. For a homeowner with no debt and low fixed costs, that’s workable.
At $28,000 per year over seven years, you draw approximately $196,000. On $240K you arrive at 67 with approximately $37,000. Almost entirely reliant on the Age Pension from that point. Still not a catastrophe, because the Age Pension continues indefinitely. But it means no buffer for unexpected costs, healthcare or flexibility.
The honest message at $240K: The bridge requires spending discipline that the retire-at-60-with-$400K scenario doesn’t. Every $5,000 less per year in drawdown over seven years adds approximately $35,000 to $40,000 to your balance at 67. That’s a more meaningful percentage improvement than it is at higher balances.ce.
This Line Chart Shows $240K depletion from age 60 to 90 under 3 spending levels.
What $240K Actually Supports in Retirement
Single homeowner, no mortgage, $20,000 to $22,000 per year:
This is the most realistic scenario for making $240K work at 60. Drawing $20,000 to $22,000 per year through the bridge, you arrive at 67 with $100,000 to $122,000. Full Age Pension applies immediately.
From 67: $29,000 pension plus $7,000 to $9,000 super drawdown equals approximately $36,000 to $38,000 per year total. For a homeowner with no debt this covers weekly grocery and household costs, utilities and rates, basic private health insurance or the pensioner concession card for healthcare, a modest car, and limited social spending. It’s the ASFA modest standard territory. It’s stable, it’s real, and the pension is a permanent income floor that doesn’t run out.
What it doesn’t cover: annual overseas travel, regular dining out, significant home renovations, or meaningful discretionary spending. This is a genuine constraint at $240K, and being honest about it before retiring is better than discovering it after.
Single homeowner, no mortgage, with part-time income:
The scenario that changes the picture most meaningfully. Even $10,000 to $15,000 per year from casual or part-time work between 60 and 67 changes the maths dramatically. Instead of drawing $20,000 to $22,000 from super per year, you draw $5,000 to $10,000. You arrive at 67 with $170,000 to $190,000 still invested. The Age Pension and a small super drawdown from 67 produce $35,000 to $40,000 per year. That’s a materially better outcome.
Part-time work in early retirement is not a failure to retire. It’s a legitimate bridge strategy that extends your super, maintains social connection, and makes the full-retirement years that follow more financially secure.
Couple with combined super near $240K to $380K:
Two Age Pension entitlements from 67, shared housing costs, and the couple full pension of approximately $43,700 per year combined. For a couple with no mortgage, the Age Pension floor from 67 is substantial enough to support a genuine retirement even if the super is largely depleted. The couple’s full pension threshold is $481,500 in combined assets. Most couples arriving at 67 after drawing $20,000 to $25,000 per year during the bridge will be well within full pension territory.
Renting at 60:
Renting materially undermines the $240K retirement scenario. Add $20,000 to $28,000 per year in rent and the bridge either runs out before 67 or forces spending so lean it’s barely sustainable. If you’re renting at 60 with $240K, the honest assessment is that full retirement at 60 is very difficult. Working until 63 to 65 to build the balance further and maintain the bridge makes a significant practical difference.
Where $240K Sits Against Australian Benchmarks
ASFA Retirement Standard (February 2026):
- Comfortable single homeowner at 67: $630,000
- Modest single homeowner at 67: $110,000
$240K sits between the modest and comfortable benchmarks, closer to the modest end. The modest benchmark at $110,000 is set for retirement at age 67 where the Age Pension provides the bulk of income from day one. Retiring at 60 with $240K means funding seven years independently first, then arriving at a position similar to the ASFA modest scenario.
Average super balances at 60 to 64 (APRA data):
- Men: approximately $396,000
- Women: approximately $313,000
At $240K you’re below the average for both genders. But averages don’t equal adequacy, and the Australian retirement system is designed knowing that a large proportion of retirees have below-average balances. The Age Pension is not a backup plan. It’s a structural feature.
Source: ASFA Retirement Standard, February 2026
The Age Pension Is Your Retirement’s Foundation at $240K
At $240K, the Age Pension is not a supplement to your retirement income. It is the anchor of it. The super bridges you to 67. The pension then carries the load, permanently.
Full Age Pension from March 2026:
| Per fortnight | Per year | |
|---|---|---|
| Single | ~$1,116 | ~$29,000 |
| Couple combined | ~$1,682 | ~$43,700 |
Assets test thresholds for homeowners (March 2026):
| Full pension | Part pension cut-off | |
|---|---|---|
| Single | Below $321,500 | Up to ~$695,500 |
| Couple combined | Below $481,500 | Up to ~$1,045,500 |
Source: Services Australia: Assets test (Current as at May 2026)
At $20,000 per year spending during the bridge, you arrive at 67 with approximately $122,000. Full pension immediately. No question. The pensioner concession card, cheaper PBS medications, bulk-billed GPs at many practices, and state government concessions on utilities and rates reduce your effective living costs further, making the combined income stretch further than the headline number suggests.
Phil and Dan covered how the Age Pension assets test actually works with real case studies in Episode 10 of the Wealthlab Podcast: “How the Age Pension Really Works.”
Options Worth Considering Seriously at $240K
Work part-time from 60 to 64 or 65. This is the highest-impact option available at this balance level. Even $15,000 to $20,000 per year from casual or part-time work means employer SG continues accumulating, super drawdowns drop to near zero, and you arrive at 67 with most of $240K still intact plus additional growth. The quality-of-life difference between full retirement at 60 and two-day-per-week semi-retirement is much smaller than most people expect.
Transition to Retirement pension while still working. From age 60, a TTR pension lets you draw up to 10% of your balance as income while still employed, allowing you to reduce hours without a sharp income drop. On $240K that’s up to $24,000 per year supplementing a reduced salary. Your employer continues paying SG on your remaining work hours. This can be a practical bridge for someone who wants to ease into retirement without the financial shock of stopping entirely.
Downsizer contributions if you own a larger property. If you own your home and have significant equity, the downsizer contribution rules allow you to contribute up to $300,000 per person into super from home sale proceeds, completely outside the standard contribution caps. Selling a larger family home and moving to a smaller property at 60 to 62 could dramatically change your retirement position while also reducing ongoing costs.
Catch-up concessional contributions before 30 June 2026. If you’re still working and your balance is under $500,000, unused concessional cap space from 2020/21 expires permanently on 30 June 2026. For a 59-year-old working their final months, a catch-up contribution before the deadline could add $10,000 to $20,000 to your balance. Log into myGov now and check your carry-forward amount. Scott and Phil covered this in Episode 7 of the Wealthlab Podcast.
Five Things to Sort Before Retiring at 60 With $240K
1. Set a specific annual drawdown target. Not a rough estimate. A specific number based on your actual spending. At $240K the difference between $20,000 and $28,000 per year during the bridge is enormous. Know your number before you stop working.
2. Switch to an account-based pension immediately. Don’t leave $240K in accumulation phase after retiring. Pension phase means zero tax on earnings. Do it on day one.
3. Apply for the Commonwealth Seniors Health Card. Provides cheaper PBS medications, bulk-billed GP visits and state concessions. Worth $2,000 to $3,500 per year and genuinely reduces the cost of living in retirement. Apply through Services Australia as soon as eligible.
4. Check insurance and update beneficiary nominations. Life and TPD cover in accumulation may not transfer automatically to pension phase. Binding nominations expire every three years at most funds. Both need to be checked and addressed before retiring.
5. Be realistic about the renter vs owner difference. If you own your home, $240K is workable with discipline. If you’re renting, the same balance in the same scenario produces a materially different and more difficult outcome. Understand which category you’re in before making the decision.
Should You Retire at 60 or Keep Working?
The financial case for continuing to work at $240K is stronger than it is at higher balance levels because the proportional impact of each additional year is larger.
One additional year of work at $65,000 salary:
- Employer SG adds approximately $7,800
- Avoids $18,000 to $22,000 in super drawdown
- Allows $240K to grow rather than shrink (approximately $12,000 at 5%)
- Combined effect: approximately $38,000 to $42,000 improvement in retirement position
That’s roughly a 16% to 17% improvement in your starting retirement balance from a single year at $240K. Each year of additional work matters more proportionally at lower balance levels.
That said, health and quality of life are real factors. As Phil said in Episode 5 of the Wealthlab Podcast, “You’ve got one answer on a spreadsheet, but you’ve got the other answer that takes into account living, breathing people with emotions.” The numbers inform the decision. They don’t make it.
Frequently Asked Questions
Can I retire at 60 with $240K in super in Australia?
You can access super at 60 and retire, but $240K requires careful management. At $20,000 per year spending during the seven-year bridge to Age Pension eligibility, the balance holds well enough to arrive at 67 with approximately $122,000, qualifying for the full Age Pension. Semi-retirement with part-time income during the bridge years significantly improves the outcome and is a legitimate strategy at this balance level.
How long will $240,000 in super last at 60?
At $20,000 per year spending with 5% net returns, approximately 18 to 20 years before depletion in isolation. From age 67, the full Age Pension substantially reduces required super drawdowns, extending the balance considerably. At $30,000 per year, the balance is nearly depleted by 67, at which point the full Age Pension continues as a permanent income floor.
Will I get the full Age Pension at 67 with $240K?
Almost certainly yes, if you’re a single homeowner. At any spending level above $15,000 per year during the bridge, you arrive at 67 with assets well below the $321,500 full pension threshold for single homeowners. The full Age Pension of approximately $29,000 per year would apply immediately.
What is the Age Pension age in Australia?
67 for anyone born on or after 1 January 1957. Retiring at 60 means seven full years of self-funded retirement before government income support begins.
Is $240K above or below average for a 60-year-old in Australia?
Below average for both genders. The average at 60 to 64 is approximately $396,000 for men and $313,000 for women. At $240K you’re below both averages. This is not unusual. A large proportion of Australians approach retirement below the national average, and the Age Pension is designed to provide meaningful income support for this group from 67.
What is the minimum drawdown from super at 60?
The minimum annual drawdown from an account-based pension for someone under 65 is 4% of the opening balance. On $240,000 that is $9,600 per year. You can draw more at any time. Keeping drawdowns close to the minimum while supplementing with modest part-time income during the bridge years is an effective strategy at this balance level.
What if I retire at 60 and run out of super before 67?
If your super balance reaches zero before you turn 67, you may be eligible for JobSeeker or another Centrelink income support payment depending on your assets and circumstances. This is a scenario worth planning to avoid, but it’s not catastrophic if it happens with a clear understanding of the options. If you are approaching this scenario, advice on managing drawdowns and Centrelink entitlements before it becomes a crisis is important.
Work Out Your Specific Numbers
The scenarios above use standard assumptions. Your actual retirement income depends on your spending, housing, whether you have a partner, and what the Age Pension pays at your specific asset level at 67.
The free Wealthlab super calculator models your own numbers in about two minutes, including the Age Pension impact from 67.
If you’d like a proper retirement income plan built around your situation, book a free chat with the Wealthlab team. No pressure, no jargon.
