Can I retire at 55 with $310K? The short answer: it’s challenging but not impossible if you plan carefully. Retiring this early means you’ll need to fund a longer gap before government benefits kick in, and you must manage your spending with precision.
Since you won’t be eligible for the Age Pension until age 67 and can usually only access superannuation from age 60, you’ll have to bridge a 12-year self-funded gap. That’s the real challenge.
What Happens Financially at 55?
At 55, you’re still below the preservation age for most Australians, meaning you can’t access your super unless you meet specific early release conditions (such as severe financial hardship or permanent incapacity).
This means your $310K must be in accessible savings or investments not locked in super unless you qualify for early release.
Retirement Costs to Expect
According to 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, and live independently.
If you’re asking, “Can I retire at 55 with $310K?”, the numbers suggest that to make your money last across 12 years, you’d need to limit spending to around $25,000/year or less. This is tight but possible if you have no housing costs and live frugally.
| Age | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 55 | $310,000 | $25,000 | $9,300 | $294,300 |
| 56 | $294,300 | $25,000 | $8,829 | $278,129 |
| 57 | $278,129 | $25,000 | $8,344 | $261,473 |
| 58 | $261,473 | $25,000 | $7,844 | $244,317 |
| 59 | $244,317 | $25,000 | $7,329 | $226,646 |
| 60 | $226,646 | $25,000 | $6,799 | $208,445 |
| 61 | $208,445 | $26,000 | $6,253 | $188,698 |
| 62 | $188,698 | $26,500 | $5,661 | $167,859 |
| 63 | $167,859 | $27,000 | $5,036 | $145,895 |
| 64 | $145,895 | $27,500 | $4,377 | $122,772 |
| 65 | $122,772 | $28,000 | $3,683 | $98,455 |
| 66 | $98,455 | $28,500 | $2,954 | $72,909 |
| 67 | $72,909 | $10,000 | $2,127 | $65,036 |
🔍 This projection shows that with strict budgeting and some conservative investment returns, your $310k can last until Age Pension eligibility kicks in and still leave a modest buffer.
How Long Can $310K Last?
Let’s assume:
- You can access the money (outside super)
- You spend ~$25,000/year
- You earn a 3% annual return on investments
Under these conditions, your funds could last around 12–13 years, taking you to the point where you can access your super at 60. From there, you’d need a sustainable drawdown strategy until Age Pension eligibility at 67.
Strategies to Make It Work
If you’re committed to retiring at 55 with $310K, you might consider:
- Reducing living costs – downsizing, relocating to a lower-cost area, or cutting discretionary spending.
- Earning part-time income – supplementing your savings with freelance or casual work.
- Investing wisely – choosing low-risk, income-generating investments to stretch your funds.
- Planning super access – timing contributions and investment switches to align with age 60 access.
Retiring at 55 with $310K is possible, but it’s a lean path that requires discipline, strategic investment, and often some form of supplemental income. The earlier you plan, the better your odds of making it work.savings, can help you maintain a modest lifestyle well into your 80s or 90s.
How to Make Retirement Work on $310K
✅ 1. Own Your Home
Without rent or mortgage payments, your cost of living drops dramatically making it much easier to survive on ~$25k/year.
✅ 2. Have Accessible Funds (Not Just Super)
If all your money is locked in super until 60, you’ll need another solution for ages 55–59. Consider investments, savings, or a financial hardship access option (if applicable).
✅ 3. Live Below the Modest Lifestyle Line
Plan to spend closer to $24k–$26k/year. Take advantage of discount cards, public services, and cut discretionary spending where possible.
✅ 4. Invest for Stability & Growth
Maintain a balance between conservative growth assets (to fight inflation) and liquid cash (to cover at least 1–2 years of expenses).
✅ 5. Explore Part-Time Work or Gig Income
Even light work for a few years can extend the life of your savings and reduce stress on your retirement plan.
Mistakes to Avoid
- ❌ Relying only on super (when you can’t access it yet)
- ❌ Overspending in early years
- ❌ Taking large lump sums
- ❌ Ignoring investment risks and inflation
- ❌ Assuming Age Pension will fully cover all costs
✅ Planning to Retire at 55 with $310k? Let Wealthlab Guide You
Early retirement is possible but it’s not easy. Our experts at Wealthlab help Australians like you retire smarter, even with modest savings.
✔️ Pre-retirement income modelling
✔️ Early retirement tax strategies
✔️ Age Pension optimisation
✔️ Cash flow and investment advice