You’ve built up $340,000 in super and are ready to leave the workforce at 60. But the big question is: Is it enough to retire comfortably in Australia and enjoy financial peace of mind? The short answer is yes but only with a clear plan and disciplined execution. Retiring at 60 means you’ll need to fund your lifestyle for seven years before the Age Pension kicks in at 67, and that requires careful budgeting, smart investing, and a deep understanding of what your money can realistically cover.
In this guide, we’ll explore how far your $340k can go, what kind of lifestyle it can support, how the Age Pension fits into the picture, and what strategies you can use to stretch your savings and avoid common early retirement mistakes.
What Happens Financially at Age 60?
At 60, you reach your preservation age, meaning you can legally and tax-free access your super if you’ve retired permanently.
But here’s the challenge:
⏳ You’ll need to self-fund your retirement for the next 7 years until you qualify for the Age Pension at 67.
With $340k, that means budgeting carefully and using your super as a steady income stream not as a lump sum withdrawal.
You’ll have the best chance if you:
- Own your home
- Spend below the ASFA modest standard
- Set up an account-based pension
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
- Use public healthcare
- Live independently
💡 With $340k, targeting $28,000–$30,000/year in spending can help bridge the 7-year gap before the Age Pension and still leave you with a buffer for later years.
How Long Can $340k Last?
Let’s say:
- You withdraw ~$29,000/year
- You earn a modest 3% return on your balance
Your $340k could last 12–14 years, giving you enough coverage until Age Pension kicks in and possibly beyond, if you’re careful.
What Happens at Age 67?
Once you reach 67, you become eligible for the Age Pension as long as you pass the income and assets tests.
Full Pension Rates (as of July 2024):
- Single: ~$29,000/year
- Couple: ~$43,800/year combined
By then, your super balance may be low enough to qualify for full or part pension, and your remaining super can supplement your income.
How to Make Retirement Work on $340,000
✅ 1. Own Your Home
Owning your home eliminates housing costs one of the biggest retirement expenses. It instantly reduces your annual budget needs by $15,000–$25,000 and is a major advantage when retiring on a modest amount.
✅ 2. Set Up an Account-Based Pension
Rolling your super into an account-based pension provides regular, tax-free income from age 60. This structure is more sustainable than lump-sum withdrawals and helps maintain eligibility for Age Pension later on.
✅ 3. Spend Below the ASFA Modest Standard
Instead of the full ~$32,000/year, aim for ~$28,000–$30,000. Use senior discounts, community health, and budget-friendly habits to stay under the limit. Even trimming a few thousand annually can extend your super’s lifespan significantly.
✅ 4. Keep Some Growth in Your Portfolio
Avoid keeping all your super in cash. Hold 30–50% in low-risk, income-producing assets like conservative growth or balanced funds to beat inflation while keeping some liquidity for emergencies or short-term spending.
✅ 5. Supplement with Part-Time Work or Side Income
Working 1–2 days a week between 60–63 can save you thousands in withdrawals, extend your super’s life, and make the transition to full retirement smoother. Plus, it can support mental health and keep you socially active.
🏡 What Kind of Lifestyle Can You Afford?
If you own your home and are open to a modest lifestyle, retiring at 60 on $340K is achievable. Here’s a rough budget on a $25K annual lifestyle:
| Category | % of Budget |
|---|---|
| Housing & Essentials | 50% |
| Healthcare & Insurance | 20% |
| Travel & Leisure | 15% |
| Emergency & Misc | 10% |
| Savings/Buffer | 5% |
This approach provides structure without sacrificing enjoyment.
Mistakes to Avoid
- ❌ Relying only on lump sums
- ❌ Underestimating 7 years before Age Pension
- ❌ Forgetting about inflation
- ❌ Not reviewing your investments regularly
- ❌ Overspending in early retirement
A smart, flexible approach will make all the difference.
Summary: Can I Retire at 60 with $340k in Australia?
Yes, you can if you make the right choices.
- Own your home
- Spend below $30k/year
- Use an account-based pension
- Invest wisely
- Consider part-time work for a few years
With the Age Pension kicking in at 67 and a conservative lifestyle, your $340k can support a modest, secure retirement.
Need Help Planning?
At Wealthlab, we specialise in helping Australians turn modest super balances into retirement peace of mind.
✅ Personalised retirement roadmaps
✅ Superannuation strategy
✅ Age Pension preparation
✅ Tax-smart withdrawals
📞 Book a free consultation now and let’s make your $340k work harder for you.