If you’re 60 and have $295,000 in super, you might be asking the big question: is it enough to retire? The truth is yes, you can retire at 60 on $295k in Australia, especially if you’ve already paid off your home and are willing to live within a modest lifestyle.
What Happens Financially at 60?
Turning 60 is a significant milestone in your financial life. It’s when you reach your preservation age, allowing you to:
- Access your super tax-free (if retired)
- Start an account-based pension
- Make key lifestyle decisions about work, spending, and retirement timing
The challenge? You won’t be eligible for the Age Pension until age 67. That’s seven years of self-funded living which must be carefully managed on your existing super.
What Retirement Costs Look Like
Let’s look at benchmark living costs based on 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
- You use public health services
- You live without financial dependents
With $295k, living slightly below the $32,000 modest standard around $28,000–$30,000/year allows your savings to last through your early retirement years.
How Long Will $295k Last?
Here’s a projection with:
- Average withdrawal of ~$29,000/year
- Annual return of 3%
| Age | Starting Balance | Withdrawal | Growth (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $295,000 | $28,500 | $8,000 | $274,500 |
| 61 | $274,500 | $29,000 | $7,300 | $252,800 |
| 62 | $252,800 | $29,500 | $6,600 | $229,900 |
| 63 | $229,900 | $30,000 | $5,800 | $205,700 |
| 64 | $205,700 | $30,500 | $5,100 | $180,300 |
| 65 | $180,300 | $31,000 | $4,200 | $153,500 |
| 66 | $153,500 | $31,000 | $3,300 | $125,800 |
| 67 | $125,800 | $10,000 | $3,500 | $119,300 |
With steady drawdowns and a conservative investment return, $295k can cover the critical 60–67 gap and still leave a buffer for later years..
What Happens at Age 67?
When you turn 67, you become eligible for the Age Pension, assuming you meet income and assets test requirements.
Current Full Pension Rates (July 2024):
- Single: ~$29,000/year
- Couple: ~$43,800/year combined
With your super drawn down under ~$120k, you’ll likely qualify for a full or part pension, helping reduce the amount you need to withdraw from your remaining super.
This Line Chart Shows Depletion of $295K from age 60 to 90 under three spending levels $20K, $25K, $30K/year.
How to Make Retirement Work on $295,000
1. Own Your Home
Being mortgage-free is a game-changer. Without rent or loan repayments, your fixed expenses drop significantly giving you room to live modestly but independently.
2. Set Up a Super Income Stream
Rolling your super into an account-based pension allows you to receive regular, tax-free payments. It’s more sustainable and gives you control over your retirement income.
3. Spend Below the ASFA Modest Standard
Targeting $28,000–$30,000/year instead of $32,000 helps your savings last longer. Use government concessions, discounts, and public services to reduce non-essential costs.
4. Keep Some Super in Growth Assets
Holding around 30–40% of your portfolio in conservative growth investments helps protect your balance from inflation while keeping the rest liquid for regular income.
5. Supplement with Light Work (Optional)
Part-time or freelance work even just 1–2 days a week can delay drawdowns and keep you socially and mentally active. Plus, it helps maintain eligibility for a higher Age Pension later.
Common Mistakes to Avoid
❌ Drawing large lump sums early
❌ Ignoring inflation and rising medical costs
❌ Relying on Age Pension before 67
❌ Not adjusting investments post-retirement
❌ Skipping professional retirement advice
Retiring on $295k? Wealthlab Can Help You Make It Work
At Wealthlab, we specialise in helping Australians retire confidently even on modest super balances. From drawdown strategies to Age Pension advice, we make your money work smarter.
✔️ Super income stream setup
✔️ Retirement income forecasting
✔️ Age Pension eligibility guidance
📞 Book a free consultation to start planning your ideal retirement