Can I Retire at 60 with $280K? You’ve got $280,000 in super and you’re ready to leave the 9–5 grind behind at age 60. But is it enough to retire on in Australia?The short answer: Yes if you’re smart about it.The long answer? Retiring at 60 with $280k is absolutely possible, but it means embracing a modest lifestyle, managing your withdrawals carefully, and making the most of the Age Pension once it becomes available at 67.
In this blog, we’ll explore:
- Mistakes to avoid with early retirement
- How far $280k can stretch
- The lifestyle it can support
- Strategies to make it work
- How the Age Pension helps after 67
What Happens Financially at 60?
Turning 60 is a milestone in retirement planning. It’s your preservation age, which means you can access your super tax-free if you’ve retired from the workforce.
But here’s the key issue:
You’re still 7 years away from qualifying for the Age Pension.
That means you’ll need to self-fund your lifestyle from 60 to 67, which can be challenging without careful budgeting.
To make it work, you should:
- Set up your super as a tax-effective income stream
- Own your home
- Avoid large lump sum withdrawals
- Stick to a realistic, modest spending plan
What Retirement Costs Look Like
The ASFA Retirement Standard (as of March 2024) estimates the following annual living costs for retirees:
- Modest lifestyle (single): ~$32,000/year
- Comfortable lifestyle (single): ~$51,000/year
These figures assume that you own your home, live independently, and use public healthcare services.With $280,000, you’re best suited to a modest lifestyle, ideally spending between $27,000–$30,000 per year. Strategic budgeting, frugal living, and taking advantage of government concessions will be essential.
Graphic:
This line chart visualising how $280K depletes from age 60 to 90 under three spending levels helps show your likely outcomes.
How Long Will $280k Last in Retirement?
Let’s look at how $280k might perform with:
- Annual drawdowns of ~$28,000–$31,000
- Annual growth at 3%
- Reduced withdrawals after Age Pension kicks in
| Age | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $280,000 | $28,000 | $6,300 | $258,300 |
| 61 | $258,300 | $28,500 | $5,800 | $235,600 |
| 62 | $235,600 | $29,000 | $5,200 | $211,800 |
| 63 | $211,800 | $29,500 | $4,600 | $186,900 |
| 64 | $186,900 | $30,000 | $3,900 | $160,800 |
| 65 | $160,800 | $30,500 | $3,100 | $133,400 |
| 66 | $133,400 | $31,000 | $2,400 | $104,800 |
| 67 | $104,800 | $10,000 | $3,100 | $97,900 |
This projection shows that your savings can cover the early years and still leave you with nearly $100k in super when the Age Pension begins.
Budgeting a $25K Lifestyle (Assumes Home Ownership)
If you own your home, here’s what a $25,000/year retirement budget might look like:
| Category | % of Budget |
|---|---|
| Living Essentials | 50% |
| Healthcare | 20% |
| Leisure & Social | 15% |
| Contingency/Emergencies | 10% |
| Miscellaneous | 5% |
This setup supports a modest, comfortable lifestyle especially if you cut unnecessary expenses before Age Pension eligibility at 67.
What Happens at Age 67?
Once you turn 67, you become eligible for the Age Pension, depending on your income and assets. With your super drawn down, you’re likely to qualify for a full or part pension.
As of July 2024:
- Single: ~$29,000/year
- Couple (combined): ~$43,800/year
With ongoing modest spending and remaining super, your lifestyle can be comfortably sustained into your 80s or 90s.
How to Make Retirement Work on $280,000
1. Own Your Home
Having no rent or mortgage is a game-changer. It drops your cost of living by thousands per year, helping you stretch your retirement savings.
2. Set Up a Super Income Stream
Rather than taking lump sums, roll your super into an account-based pension. It gives you tax-free, regular payments and helps preserve your assets for longer.
3. Spend Below the ASFA Modest Standard
Live on $27,000–$30,000 annually instead of $32,000. Use healthcare concessions, budget for essentials, and limit luxuries without compromising your quality of life.
4. Keep Conservative Growth in Your Portfolio
Hold a mix of income-producing investments and liquid cash. This allows small returns to offset inflation and keeps money accessible for emergencies.
5. Work Casually (If Needed)
Even 1–2 days of work per week from age 60–63 can add valuable breathing room. It delays withdrawals and increases your Age Pension eligibility later on.
Mistakes to Avoid with a $280k Retirement Plan
❌ Spending too much in the first few years
❌ Not planning for inflation or healthcare spikes
❌ Assuming you can access Age Pension before 67
❌ Holding too much in cash and missing growth
❌ Avoiding professional financial advice
Retiring on $280k? Talk to Wealthlab First
At Wealthlab, we help everyday Australians make the most of their super no matter the balance. If you’re aiming to retire early and want to make sure it works long-term, our experts can help you:
- Design a super drawdown strategy
- Model your income across different scenarios
- Maximise your Age Pension benefits
📞 Book your free consultation today and let’s plan your retirement the smart way.