Retire at 60 You’ve saved $360,000 in super and are ready to leave the 9-to-5 grind at 60. The big question is: Can I retire with $360K and still enjoy financial security in Australia? The short answer: yes but careful planning is essential.
In this guide, we’ll cover:
- How far $360k can realistically go
- What lifestyle it supports
- What happens when you reach Age Pension age
- Strategies to stretch your super
- Common pitfalls to avoid
What Happens Financially at 60 with $360K
At 60, you’ve reached your preservation age, meaning you can access your super tax-free if permanently retired. But here’s the challenge: you’ll need to self-fund your living expenses for the next 7 years until the Age Pension kicks in at 67.
If you own your home, limit withdrawals, and manage your budget carefully, your $360k can cover this gap while leaving a cushion for later years.
How Retirement Costs Look for $360K
The ASFA Retirement Standard (March 2024) provides benchmarks for a single retiree:
- Modest lifestyle: ~$32,000/year
- Comfortable lifestyle: ~$51,000/year
These figures assume you own your home, rely on public healthcare, and live independently. With $360k, a below-modest lifestyle of $28,000–$30,000/year can help preserve your super until Age Pension eligibility.
What Happens at Age 67?
At 67, you may be eligible for the Age Pension, subject to assets and income tests.
Full Age Pension rates (July 2024):
- Single: ~$29,000/year
- Couple: ~$43,800/year combined
By this stage, your remaining super supplements the pension, allowing you to maintain a modest lifestyle well into your later years.
Strategies to Make Retirement Work on $360K
1. Own Your Home
Eliminating mortgage or rent is the single most effective way to stretch your super. Owning your home lets your $360k go entirely toward living expenses and savings for unexpected costs.
2. Draw Super Gradually
Set up a regular account-based pension to receive tax-free income while leaving the remaining balance invested. Avoid withdrawing lump sums that could deplete your super too quickly.
3. Keep Investments Balanced
Maintain a diversified mix of growth and defensive assets. This approach protects your super from market fluctuations while generating returns to stretch your money further.
4. Budget for Below-Modest Living
Aim for $28,000–$30,000 per year pre-pension. Take advantage of concession cards, senior discounts, and public services to reduce costs without sacrificing quality of life.
5. Plan for Healthcare Costs
Even with Medicare, plan for dental, optical, and specialist expenses. Consider a basic health insurance policy if affordable, ensuring you don’t face unexpected medical bills.
Retirement Risks to Avoid
- Overspending early: Rapid withdrawals can leave you short before Age Pension eligibility.
- Relying too heavily on market returns: Keep a portion of funds in safer investments.
- Ignoring inflation: Budget with a buffer for rising costs over time.
- Not reviewing your plan annually: Life changes, so update your strategy regularly.
Should You Retire at 60 with $360K?
Yes, you can. If you:
✔ Own your home
✔ Live within a modest budget
✔ Manage your super strategically
✔ Prepare for Age Pension eligibility
Then retiring at 60 with $360k is realistic. You may not enjoy luxury living, but you can achieve financial stability and freedom from full-time work.
Can Help You Make $360K Work
At Wealthlab, we specialise in helping Australians retire smarter, even with modest super balances. We’ll help you:
- Map out retirement cashflow
- Optimise super withdrawals
- Plan for Age Pension eligibility
- Avoid common retirement pitfalls
👉 Book your retirement strategy session today and learn how to make $360k work for a stress-free retirement.