If you’ve saved $365,000 in super and are wondering whether you can retire at 62, you’re not alone.Many Australians in their early 60s are asking the same question is it enough to stop working and still live comfortably?The good news: yes, it’s possible to retire with $365K.
But success depends on your lifestyle, income strategy, and how you balance your super, investments, and the Age Pension once you qualify.
In this updated 2025 guide, we’ll explore how long $365K can last, how to make it work harder, and practical ways to build financial confidence as you transition into retirement.
What Does $365K Mean for Retirement in 2025?
Your super balance might look modest, but when managed correctly, it can go a long way.Here’s a simple breakdown of how long your $365K might last, depending on how much you spend each year:
| Annual Spending | Estimated Longevity of $365K |
|---|---|
| $30,000/year | ~17–18 years |
| $40,000/year | ~13–15 years |
| $50,000/year | ~10–11 years |
These projections assume:
- You retire at 62 and access super through an income stream
- Average investment growth of 2.5% per year after inflation
- No lump-sum withdrawals or high-risk investments
So, while $365K might not fund a luxury lifestyle, it can comfortably carry you through the years leading up to the Age Pension at 67 and beyond, if you plan wisely.
The Age Pension: Your Retirement Safety Net
At age 67, most Australians with modest assets become eligible for Age Pension support.
As of 2025, the maximum payment rates are approximately:
- $28,500 per year for singles
- $43,700 per year for couples
That means even if your super balance starts to decline, the Age Pension will help top up your income.
For example:
If you retire at 62 and live on $40,000 per year, you’ll likely rely on super for five years.
Once the pension starts at 67, you could combine your remaining super drawdown and pension payments to maintain the same lifestyle.
Smart Strategies to Make $365K Work Harder
You don’t have to increase your super overnight but you can make your existing balance work smarter.
Here’s how:
1. Turn Your Super into an Account-Based Pension
When you retire, you can convert your super into a regular income stream.
This gives you flexibility, tax-free income after 60, and keeps your super invested to continue growing.
It’s one of the most effective ways to stretch your savings and maintain consistency.
2. Balance Growth and Stability
At 62, it’s tempting to move everything into low-risk cash or fixed interest.
But with life expectancy now exceeding 85, your money needs to keep growing.
Consider a balanced investment option typically 60% growth assets (shares, property) and 40% defensive (bonds, cash).
This approach can beat inflation without exposing you to excessive risk.
3. Control Spending in Early Retirement
The early years of retirement often involve more travel and lifestyle expenses.
Be mindful of overspending too soon aim for a sustainable withdrawal rate (around 4–5% per year).
The more disciplined your spending, the longer your money will last.
4. Plan for the “Gap Years” (62–67)
Between 62 and 67, you’ll rely entirely on your super or investments before the Age Pension begins.
Here’s how to bridge the gap:
- Work part-time or take on consulting to supplement income
- Draw from your super gradually to preserve your balance
- Review your investment mix annually to adjust for performance and inflation
5. Factor in Healthcare and Insurance Costs
Healthcare becomes more important as you age.
Include private health cover and out-of-pocket medical expenses in your retirement budget.
Consider switching to a fund that offers lower insurance premiums once you stop working.
What Lifestyle Can You Expect with $365K?
Your comfort level depends largely on home ownership and spending habits.
If you own your home outright, $365K combined with the Age Pension can support a modest to comfortable lifestyle.
According to ASFA’s 2025 Retirement Standard:
- A modest lifestyle requires around $32,915 per year for singles
- A comfortable lifestyle costs around $53,289 per year
So if you manage your budget around $40,000 per year until pension age, you’re on track for financial stability.
Example Budget: Living Modestly Yet Comfortably
| Category | % of Budget | Annual Cost (Approx.) |
|---|---|---|
| Housing & Utilities | 22% | $6,600 |
| Food & Groceries | 18% | $5,400 |
| Healthcare & Insurance | 15% | $4,500 |
| Transport | 13% | $3,900 |
| Leisure & Travel | 10% | $3,000 |
| Clothing & Personal Care | 8% | $2,400 |
| Bills & Communication | 7% | $2,100 |
| Other Essentials | 7% | $2,100 |
Total: ~$30,000 per year enough for a modest but fulfilling lifestyle, especially once the Age Pension adds income from 67 onwards.
This Line Chart Shows How $365K Super Depletion from Age 60 to 90 Visualising how your balance depletes under different lifestyles helps you compare your options. Spending less can significantly extend the life of your super.
Common Mistakes to Avoid
Even with a solid plan, many retirees unintentionally shorten the lifespan of their super.
Avoid these pitfalls:
- Withdrawing too much, too early
- Leaving super entirely in cash accounts
- Ignoring rising healthcare and insurance costs
- Missing out on Age Pension eligibility
- Failing to review your financial plan each year
FAQs: Can I Retire at 62 with $365K in Australia?
1. Is $365K enough to retire at 62?
Yes, if you live modestly, own your home, and manage your withdrawals strategically until Age Pension support begins at 67.
2. Will I qualify for the Age Pension later?
Most likely. With $365K in super, you’ll likely meet the asset and income test thresholds once you turn 67.
3. Can I work part-time while drawing from super?
Yes. You can work part-time while receiving super income and it may help you delay withdrawals and preserve your savings.
4. How can I make my money last longer?
Use an account-based pension, invest for moderate growth, and limit annual drawdowns to around 4% of your balance.
5. Should I seek professional advice?
Absolutely. Retirement planning is personal, and a qualified adviser can help structure your income and investment mix for long-term security.
So, can you retire at 62 with $365K in Australia?
Yes with smart planning, controlled spending, and the right financial structure, $365K can comfortably bridge the years to Age Pension age and beyond. Retirement isn’t just about how much money you have it’s about how you use it.
At Wealthlab, we help Australians maximise their super, reduce tax, and design retirement strategies that deliver freedom, not stress.
Book your free consultation today to discover how to make your $365K go further and build the retirement you deserve.
Learn More About Retirement & Superannuation
https://www.superannuation.asn.au/consumers/retirement-standard/
https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super
https://www.aihw.gov.au/reports/health-welfare-expenditure/health-expenditure-australia