Reaching 60 with $290,000 in superannuation might leave you wondering whether it’s enough to exit the workforce. While it’s below the “comfortable” benchmark, it’s still very possible to retire on this amount — especially if you’re mortgage-free and willing to live modestly.
What Happens Financially at 60?
At 60, you’ve hit your preservation age — meaning if you’ve retired, you can access your super tax-free. But you won’t be eligible for the Age Pension until you turn 67. That leaves a 7-year gap you’ll need to fully self-fund.
That might sound overwhelming, but with:
- Spending discipline
- No housing costs
- Smart drawdown planning
What Retirement Costs Look Like
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 the public health system, and live independently.If you can bring your annual spending down to around $28,000–$30,000, your $290k balance is well-positioned to carry you through to Age Pension eligibility.
Graphic:
This line chart showing your super balance from age 60 to 90 under different spending levels ($20K, $25K, $30K/year) offers a clear comparison of how long your funds could last.
Sample Budget for a $25K Lifestyle
For a modest retirement lifestyle, especially if you own your home, here’s how a $25K yearly budget might break down:
| Category | % of Budget |
|---|---|
| Essentials (food, bills) | 50% |
| Health & Insurance | 20% |
| Leisure & Travel | 15% |
| Emergencies | 10% |
| Miscellaneous | 5% |
A lifestyle like this requires planning and discipline but can support a decent quality of life.
How Long Will $290k Last?
Here’s a sample drawdown projection assuming a 3% annual return and withdrawals around $28,500–$31,000:
| Age | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $290,000 | $28,000 | $8,700 | $270,700 |
| 61 | $270,700 | $28,500 | $8,121 | $250,321 |
| 62 | $250,321 | $29,000 | $7,360 | $228,681 |
| 63 | $228,681 | $29,500 | $6,460 | $205,641 |
| 64 | $205,641 | $30,000 | $5,380 | $181,021 |
| 65 | $181,021 | $30,500 | $4,200 | $154,721 |
| 66 | $154,721 | $31,000 | $3,100 | $126,821 |
| 67 | $126,821 | $10,000 | $3,800 | $120,621 |
With careful spending and a balanced portfolio, your savings can last until Age Pension kicks in and leave you with a decent buffer for the years ahead.
What Happens at Age 67?
At age 67, you can apply for the Age Pension, assuming you meet income and asset test thresholds.
Current Full Pension Rates (July 2024):
- Single: ~$29,000/year
- Couple: ~$43,800/year combined
With your super balance below $125k at 67, you may qualify for a full or part pension, allowing you to draw less from your remaining super and helping it last into your 80s or 90s.
How to Make Retirement Work on $290,000
1. Own Your Home
Owning your home is a game-changer. Without rent or mortgage payments, your annual cost of living drops by thousands — making a modest retirement lifestyle much more achievable.
2. Set Up an Account-Based Pension
Turn your super into an income stream with regular, tax-free payments. This structured approach ensures you don’t outlive your savings and supports your Age Pension eligibility down the line.
3. Spend Below the ASFA Modest Standard
Aim for $28,000–$30,000 annually instead of $32,000. Make use of public services, senior discounts, and cost-of-living concessions to lower spending without compromising quality of life.
4. Keep a Balanced Investment Strategy
Maintain some exposure to conservative growth assets. Keeping 30–40% of your super invested in low-risk options can protect you from inflation, while keeping cash reserves for short-term needs.
5. Consider Light Work or Freelancing
Even 1–2 days of casual or part-time work per week can reduce how much super you withdraw, preserve your balance, and improve mental wellbeing. It may also help improve Age Pension outcomes later.
Common Mistakes to Avoid
❌ Spending too much in early retirement
❌ Forgetting about inflation and medical costs
❌ Withdrawing lump sums from super unnecessarily
❌ Delaying professional financial advice
❌ Ignoring how super affects Age Pension eligibility
Ready to Retire on $290k? Let Wealthlab Help You Plan It
At Wealthlab, we specialise in retirement planning for everyday Australians. Whether you’ve saved $290k or $900k, our experts help you build a plan that balances lifestyle, longevity, and government support.
- Account-based pension setup
- Income and drawdown modelling
- Age Pension advice and strategies
📞 Book your free consultation today
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