Retiring at 60 with $240,000 in super is possible with careful planning, disciplined budgeting and the right strategy. If you are asking whether $240K in Australia is enough to retire at 60, the honest answer is yes, but it requires discipline and smart management to make it work.
In this guide we break down how far $240K can stretch, what kind of lifestyle to expect, and how to make your money last until the Age Pension begins at 67.
What Happens Financially When You Retire at 60 with $240K in Australia?
At age 60, you can access your super tax-free, but you will need to self-fund your lifestyle until you are eligible for the Age Pension at 67.
Your preservation age is 60 for anyone born after 30 June 1964. Accessing your super requires meeting a condition of release, typically retiring from the workforce or leaving an employer after turning 60. Once that box is ticked, your super is yours to draw from tax-free.
The key constraint is the seven-year gap. From 60 to 67, you are fully responsible for funding your lifestyle from your own savings. No government income support applies specifically to early retirees who stop work before pension age.
What Retirement Costs Look Like in Australia
According to the ASFA Retirement Standard (February 2026 update):
- $35,199 a year for a modest lifestyle (single homeowner)
- $54,240 a year for a comfortable lifestyle (single homeowner)
- $50,866 a year for a modest lifestyle (couple homeowners)
- $77,375 a year for a comfortable lifestyle (couple homeowners)
Both standards assume you own your home outright and are in reasonably good health. With $240K, living at or below the ASFA modest standard is necessary during the 60 to 67 gap, ideally spending around $26,000 to $28,000 a year.
How Much Do I Need to Retire in Australia?
This depends on three things: when you retire, what you want to spend, and whether you own your home.
ASFA’s lump sum benchmarks (February 2026) for homeowners retiring at 67 are:
- $630,000 for a single person targeting a comfortable retirement
- $690,000 to $730,000 for a couple targeting a comfortable retirement
- $110,000 for a single person targeting a modest retirement
- $120,000 for a couple targeting a modest retirement
The modest figures look surprisingly low because the Age Pension covers most of the modest standard from 67 onwards for homeowners. The comfortable figures are higher because they assume a lifestyle well beyond what the pension provides.
Retiring at 60 rather than 67 requires more, because you are self-funding for seven extra years before any pension support arrives. Someone targeting a modest lifestyle from age 60 in practice needs $300,000 to $400,000 to cover the gap comfortably. $240K is below that range, which is why careful spending and part-time income in the early years make a real difference.
This Line Chart Shows $240K depletion from age 60 to 90 under 3 spending levels.
How Much Super Do I Need to Retire at 60 in Australia?
For a single homeowner targeting a modest lifestyle, around $350,000 to $450,000 at age 60 provides a reasonable buffer to pension age with moderate investment growth. A comfortable lifestyle from 60 requires considerably more, typically $700,000 or above.
$240K is below the modest benchmark for retiring at 60, but it is not disqualifying. With spending around $26,000 to $28,000 a year and some part-time income in the early years, it is workable. The key is arriving at 67 with something left, so the Age Pension can take over as the main income source.
How Long Will $240K Last in Retirement?
Projection assuming $28,000 annual withdrawals and 5% net annual return in an account-based pension:
| Age | Starting balance | Withdrawal | Net growth (5%) | Ending balance |
|---|---|---|---|---|
| 60 | $240,000 | $28,000 | $10,600 | $222,600 |
| 61 | $222,600 | $28,000 | $9,730 | $204,330 |
| 62 | $204,330 | $28,000 | $8,817 | $185,147 |
| 63 | $185,147 | $28,000 | $7,857 | $165,004 |
| 64 | $165,004 | $28,000 | $6,850 | $143,854 |
| 65 | $143,854 | $28,000 | $5,793 | $121,647 |
| 66 | $121,647 | $28,000 | $4,682 | $98,329 |
| 67 | $98,329 | $15,000 | $4,166 | $87,495 |
By 67, you still have around $87,000 in super and the Age Pension is now supplementing your income. With assets well under the full pension threshold of roughly $314,000 for a single homeowner, you would likely receive close to the full Age Pension rate of approximately $29,754 a year.
What Do You Qualify For at Age 60 in Australia?
At 60, the main things you become eligible for are:
Super access. Once you meet a condition of release, you can access your super tax-free as either a lump sum or an account-based pension income stream.
Transition to retirement pension (TTR). If you are still working but have reached preservation age, you can draw up to 10% of your super balance as income each year while still employed. This can be useful for reducing hours without fully stopping work.
Seniors concession cards. Some state and territory concession cards are available from 60 depending on your circumstances. The Commonwealth Seniors Health Card is available from 67 (or when you reach Age Pension age), not from 60.
Age Pension. Not yet. This starts at 67 for anyone born on or after 1 January 1957. This is the most important thing to understand: there is a seven-year wait between super access at 60 and pension eligibility at 67.
How to Retire at 60 in Australia: What Actually Works
Own your home. Owning your home outright removes one of the largest living expenses. Without rent or mortgage payments, $240K stretches considerably further.
Set up an account-based pension. Convert your super into a regular income stream rather than taking lump sums. This keeps your super invested and growing while you draw a regular tax-free income. It also gives you more control over Centrelink planning.
Spend below the ASFA modest standard. Aim for $26,000 to $28,000 a year. Use senior discounts, bulk billing for health services and public transport concessions to reduce costs. Every dollar saved now extends your super.
Keep some super in growth investments. Avoid putting everything in cash. A balanced investment option with 50 to 60% growth assets protects against inflation over a 30-year retirement. Review your investment mix annually.
Consider part-time or casual work. Even a few hours a week between 60 and 63 can significantly reduce pressure on your super balance, delay withdrawals and improve your Age Pension position at 67.
The Australian Retirees Superannuation Benchmark
A useful reference point: according to ABS data, the median super balance for Australians aged 60 to 64 is around $211,000 for women and $302,000 for men. The average (mean) is higher but skewed by large balances at the top.
What this tells you is that $240K at 60, while below the comfortable retirement benchmark, is actually above the median for Australian women in that age group and in the same ballpark as many men. You are not an outlier. Plenty of Australians retire on similar or lower balances, particularly when combined with a paid-off home and the Age Pension at 67.
The ASFA benchmark for a comfortable retirement at 67 is $630,000 for singles. $240K is well below that. But the modest standard requires only $110,000 at 67, and that is mostly funded by the pension itself. The real benchmark for someone with $240K is whether you can bridge the gap to 67 without exhausting your savings. The numbers above suggest you can, with careful spending.
Can You Retire at 60 with $250K?
Very similar picture to $240K. An extra $10,000 gives you a small additional buffer but does not fundamentally change the strategy. At $28,000 annual spending and 5% net returns, $250K would leave around $97,000 in super at 67, compared to $87,000 at $240K. Both scenarios land you in full or near-full Age Pension territory.
Lifestyle Expectations on $240,000
| Category | What to expect |
|---|---|
| Housing | Must own your home outright |
| Travel | Domestic only, limited interstate |
| Food and essentials | Covered with careful budgeting |
| Healthcare | Medicare, basic extras cover |
| Discretionary spending | Low, planned in advance |
Pitfalls to Avoid When Retiring at 60 with $240K
Taking large lump sum withdrawals drains your balance too quickly. Steady account-based pension drawdowns are far more efficient.Assuming the Age Pension starts before 67 is a common mistake. There is no earlier income support safety net for early retirees without other assets.
Underestimating inflation and healthcare costs. Medical expenses in later retirement can be significant. Building a buffer from the start is smarter than hoping it will not be needed.
Holding all funds in cash risks losing ground to inflation over a 30-year retirement. A balanced investment approach is generally more appropriate.Not getting advice. A single session with a financial adviser to model your drawdown and pension eligibility can save you from costly mistakes.
FAQs: Retiring at 60 with $240K in Australia
Can I retire at 60 with $240K in Australia?
Yes, for a homeowner with modest spending expectations around $26,000 to $28,000 a year. $240K is below ASFA’s comfortable retirement benchmark but workable with careful management. The Age Pension at 67 provides meaningful additional income.
How much do I need to retire in Australia?
For a comfortable retirement from age 67, ASFA estimates $630,000 for singles and around $690,000 to $730,000 for couples. For a modest lifestyle from 67, $110,000 to $120,000 is sufficient as the Age Pension covers most costs. Retiring at 60 requires more, since you self-fund an extra seven years.
How much super do I need to retire at 60 in Australia?
For a modest lifestyle from 60, around $350,000 to $450,000 is more comfortable. $240K is workable but tight, best supplemented with some part-time income in the early years.
What do you qualify for at age 60 in Australia?
At 60 you can access your super tax-free if you have met a condition of release, and you may be eligible for a transition to retirement pension if still working. You do not qualify for the Age Pension until 67, and the Commonwealth Seniors Health Card also starts at pension age, not at 60.
Can you retire at 60 with $250K in Australia?
Yes, with a very similar picture to $240K. The extra $10,000 adds a small buffer but does not change the core strategy. Both scenarios point to modest lifestyle spending with near-full Age Pension eligibility at 67.
What is the Australian retirees superannuation benchmark?
ASFA’s comfortable retirement benchmark is $630,000 for a single homeowner retiring at 67. The median actual super balance for Australians aged 60 to 64 is considerably lower, around $211,000 for women and $302,000 for men. $240K is above the median for women and comparable to many men approaching retirement.
How to retire at 60 in Australia with a modest balance?
Own your home, set up an account-based pension, spend around $26,000 to $28,000 a year, keep your super in a balanced investment option, and consider part-time work in the early years to reduce drawdown pressure. The Age Pension at 67 significantly eases the picture from that point.
Does the stock market affect my super if I retire at 60?
Yes. If your super is invested in a balanced or growth option, short-term market movements will affect your balance. The key protection is time: at 60 you still have a 25 to 30 year retirement horizon, which means markets have time to recover from downturns. Moving to all cash to avoid market risk can actually increase your long-term risk of running out of money.
Ready to work out whether $240K is enough for your retirement? Book a free call with the Wealthlab team and get a clear picture of what your balance means for your specific situation.