Turning 60 is a milestone. You’re experienced, wiser and maybe ready to trade deadlines for downtime.But if your super balance is around $245K, it’s natural to ask:Can I actually retire at 60 in Australia and live comfortably?The short answer: yes but it will take planning, discipline, and strategy.
While $245K might not sound like much compared to what the media calls a “comfortable” retirement, it can absolutely work if you know how to manage your expenses, use your super efficiently, and take advantage of government support like the Age Pension.
Let’s unpack what that really looks like from your first years of self-funding to how your income shifts once pension payments begin.
What Happens Financially When You Retire at 60 with $245K
At 60, you’ve reached your preservation age, meaning you can finally access your super tax-free.
However, you’re still seven years away from the Age Pension (67), so your first stage of retirement will be self-funded.
That’s where planning becomes critical. You’ll need to:
- Manage withdrawals carefully so your balance lasts.
- Budget realistically for 7 years before pension support kicks in.
- Consider part-time work or passive income to ease pressure on your super.
Think of it as a two-phase retirement plan:
Phase 1: Rely on super and small income sources (60–67).
Phase 2: Blend super and the Age Pension for stability (67+).
What Retirement Costs Really Look Like
According to the ASFA Retirement Standard (March 2024):
| Lifestyle Type | Single Annual Cost | Couple Annual Cost |
|---|---|---|
| Modest (basic comforts) | ~$32,000 | ~$46,000 |
| Comfortable (travel, dining, extras) | ~$51,000 | ~$72,000 |
These figures assume you own your home and rely on public healthcare.
For someone with $245K in super, a modest lifestyle is achievable but you’ll need to spend smartly and prioritise essentials.
If your super earns a 3% annual return, and you withdraw around $28K per year, your funds could comfortably bridge those first 7 years.
Example: How $245K Can Last From 60 to 67
Here’s a simple projection showing how your balance could look if you withdraw about $28K annually and your super continues earning 3%:
| Age | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $245,000 | $28,000 | $6,400 | $223,400 |
| 61 | $223,400 | $28,500 | $5,800 | $200,700 |
| 62 | $200,700 | $29,000 | $5,100 | $176,800 |
| 63 | $176,800 | $29,500 | $4,300 | $151,600 |
| 64 | $151,600 | $30,000 | $3,700 | $125,300 |
| 65 | $125,300 | $30,500 | $2,600 | $97,700 |
| 66 | $97,700 | $31,000 | $2,200 | $68,900 |
| 67 | $68,900 | $10,000 | $2,000 | $60,900 |
By the time you reach 67, you’ll still have a modest balance left and the Age Pension can start to take pressure off your savings.
What Happens at 67 When the Age Pension Kicks In
Once you turn 67, you can apply for the Age Pension, which provides a safety net for retirees with limited income or assets.
Current Full Pension Rates (as of July 2024):
- Single: ~$29,000 per year
- Couple (combined): ~$43,800 per year
If you’ve managed your withdrawals carefully, you could qualify for a full or partial pension.
This reduces your reliance on super withdrawals and helps your savings stretch much longer.
Tip: Keeping some of your funds in an account-based pension can actually improve Age Pension eligibility by lowering assessable income.
What Lifestyle Can You Expect with $245K?
Retiring with $245K means you’ll live modestly but comfortably especially if you own your home outright.
Here’s what that might look like day to day:
| Category | Expectation |
|---|---|
| Housing | Must own your home; renting would strain your budget. |
| Essentials | Covered bills, groceries, insurance, basic transport. |
| Healthcare | Primarily public system; consider basic private cover. |
| Leisure & Travel | Local getaways, short domestic trips, social activities. |
| Discretionary Spending | Moderate small treats, occasional dining out. |
You won’t be flying first-class to Europe, but you’ll have freedom, stability, and control the hallmarks of a good retirement.
5 Smart Ways to Make $245K Work Harder
1. Own Your Home (or Work Toward It)
Housing is the biggest cost in retirement. If you own your home, you remove the largest expense freeing up thousands per year for living costs and healthcare.
2. Turn Super Into an Account-Based Pension
Rolling your super into an account-based pension gives you a steady, tax-free income stream while the rest stays invested.
It also reduces your assessable assets for Age Pension eligibility later.
3. Live Slightly Below the “Modest” Standard
If you can keep your spending around $26K–$28K a year, your funds will last longer.
Use government concessions, senior discounts, and public healthcare to save hundreds monthly.
4. Invest Conservatively for Growth
Avoid leaving all your money in cash inflation will quietly eat away at it.
A conservative-growth portfolio (bonds, defensive ETFs, and income funds) can protect your capital while keeping pace with costs.
5. Supplement Income with Part-Time Work
Many retirees enjoy a “semi-retirement.”
Even earning $10K–$15K a year through part-time work, consulting, or renting out a spare room can make a big difference allowing your super to last years longer.
Example: Peter’s Plan for Retiring at 60 with $245K
Peter, 60, owns his home and has $245K in super.
He wants to stop full-time work but isn’t ready to stop earning entirely.
Here’s how he plans it:
- Withdraws $25K annually from super.
- Earns $10K from part-time handyman work.
- Uses public healthcare and senior discounts to reduce costs.
- Applies for the Age Pension at 67, adding $29K per year.
By keeping his lifestyle modest, Peter’s super comfortably lasts through his 80s without debt, stress, or financial strain.
Common Retirement Mistakes to Avoid
- Withdrawing large lump sums too early.
- Ignoring inflation your costs will rise slowly but surely.
- Holding all funds in cash with no growth potential.
- Missing out on pension eligibility due to poor planning.
- Underestimating healthcare and home maintenance costs.
Avoiding these mistakes is often the difference between a stressful retirement and a sustainable one.
FAQs: Can I Retire at 60 with $245K in Australia?
Q1: Is $245K enough to retire at 60?
Yes if you own your home, live modestly, and supplement your income until the Age Pension begins.
Q2: How long will $245K last?
With careful withdrawals and 3% growth, it can last 20–25 years, especially once the Age Pension kicks in.
Q3: What’s the best investment strategy for 60-year-olds?
A conservative growth mix enough equities for modest growth, but safe enough to protect your capital.
Q4: Can I work after retiring?
Absolutely. Many Australians work part-time in early retirement for extra income and social connection.
Q5: What lifestyle can I expect?
A simple, comfortable life focused on essentials, community, and freedom from work not luxury, but plenty of quality living.
Retiring at 60 with $245K isn’t about how much you have it’s about how well you manage it.
With discipline, smart investment, and strategic use of the Age Pension, you can live securely, enjoy your time, and never feel like you’re one bill away from worry.
Freedom at 60 is possible even on a modest balance when you have a plan.
Plan Your Retirement with Wealthlab
At Wealthlab, we specialise in helping Australians turn small super balances into long-term stability.
Our advisers will help you:
- Structure a retirement income plan tailored to your lifestyle.
- Maximise Age Pension and tax-free benefits.
- Build an investment strategy that balances growth and security.