Many Australians approaching 60 wonder if their retirement savings are enough. If you’ve built up $260,000 in super, you’re above the national median but not necessarily in the “financially set” category. The real question is: Can I retire at 60 with $260K?
The answer is yesif you own your home, budget smartly, and manage your drawdowns carefully. $260K can carry you through your early retirement years and still preserve eligibility for the Age Pension later on.
What Happens Financially at 60 with $260K?
At age 60, you reach your preservation age, which means you can now access your super tax-free if you retire. But you’re still seven years away from the Age Pension, which begins at age 67. This means you must self-fund your lifestyle for at least 7 years, covering housing, food, healthcare, and all other living expenses.
What Retirement Costs Look Like When You Retire at 60 with $260K
Let’s break it down: retirement costs depend on your lifestyle. According to the ASFA Retirement Standard (March 2024):
- Modest lifestyle (single): ~$32,000/year
- Comfortable lifestyle (single): ~$51,000/year
These figures assume you own your home, rely on Medicare and public health, and manage your living expenses independently no financial help from the government or family members.
With $260,000, you can absolutely afford a modest lifestyle, especially if you budget smartly and make every dollar count until the Age Pension kicks in at 67.
How Long Will $260K Last When You Retire at 60?
Let’s take a look at a projection assuming annual withdrawals of $28,000 and a 3% annual return:
| Year | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $260,000 | $28,000 | $7,800 | $239,800 |
| 61 | $239,800 | $28,500 | $7,200 | $218,500 |
| 62 | $218,500 | $29,000 | $6,300 | $195,800 |
| 63 | $195,800 | $29,500 | $5,400 | $171,700 |
| 64 | $171,700 | $30,000 | $4,300 | $146,000 |
| 65 | $146,000 | $30,500 | $3,200 | $118,700 |
| 66 | $118,700 | $31,000 | $2,100 | $89,800 |
| 67 | $89,800 | $10,000 | $1,800 | $81,600 |
By 67, your Age Pension will kick in, helping to ease the pressure on your super withdrawals.
What Happens at Age 67 After You Retire at 60 with $260K?
Once you turn 67, you can apply for the Age Pension, subject to income and asset tests. If your super balance has decreased enough, you may qualify for a full or partial pension to help supplement your super withdrawals.
Current Full Pension Rates (July 2024):
- Single: ~$29,000/year
- Couple (combined): ~$43,800/year
Once the pension starts, you won’t need to rely as heavily on your super, allowing you to live comfortably and extend the life of your savings.
How to Make Retirement Work on $260,000
1. Own Your Home
Owning your home before you retire removes a major expense and frees up your super for everyday living. With no mortgage or rent, your spending needs drop significantly. It also adds long-term stability. If you’re close to owning, delay retirement until your mortgage is fully paid.
2. Set Up an Account-Based Pension
Convert your super into an account-based income stream to receive regular, tax-free payments. This gives you control over drawdowns and helps stretch your savings. It also supports Centrelink planning, as smaller balances may improve pension eligibility. Avoid large lump-sum withdrawals unless absolutely needed.
3. Spend Below the ASFA Modest Standard
Try to live on $26,000–$28,000/year by trimming non-essentials. Take advantage of senior discounts, public transport, and bulk billing for health services. This spending level still supports a decent lifestyle if managed wisely. Every dollar you save now extends your super’s lifespan later.
4. Keep Some Super in Conservative Growth Investments
Avoid parking all your funds in cash — it may lose value over time. Instead, consider a mix of balanced, income-generating investments and liquid cash reserves. Holding 30–50% in growth assets can protect against inflation while keeping your savings stable. Rebalance yearly to match risk tolerance.
5. Consider Flexible or Part-Time Work
Even a few hours per week of casual work between 60 and 63 can delay withdrawals and reduce pressure on your balance. It helps preserve super and improves your future Age Pension position. It also offers social engagement, purpose, and structure — all key for mental well-being.
What Lifestyle Can $260k Support?
| Category | Expectation |
| Housing | Must own home (or low-cost accommodation) |
| Groceries & Bills | Manageable with smart planning |
| Travel | Mostly local travel, limited big holidays |
| Health Care | Public system with optional extras cover |
| Discretionary Spend | Low to moderate |
This Line Chart Shows Depletion of $260K from age 60 to 90 at $20K, $25K, $30K annual spending
Mistakes to Avoid with a $260k Retirement Plan
❌ Withdrawing large sums early
❌ Forgetting to plan for inflation
❌ Assuming Age Pension starts before 67
❌ Ignoring healthcare costs
❌ Not reviewing investments regularly
Ready to Retire on $260k? Wealthlab Can Help
At Wealthlab, we help Australians with modest balances make confident, informed retirement decisions. Whether you’re 60, 65 or somewhere in between we’ll show you how to stretch every dollar.
✔️ Super income strategies
✔️ Budget planning
✔️ Age Pension optimisation
✔️ Smart investment options