You’ve reached 60 with $375,000 in super and are wondering if it’s enough to retire without worrying about running out of money. The short answer is yes, it’s possible, but it’s not a set-and-forget plan. You’ll need a smart strategy, disciplined spending, and an understanding of how government support fits into the picture.Retiring at 60 with $375k means bridging the seven-year gap until Age Pension eligibility at 67. If you own your home and keep your lifestyle modest, this amount can fund your early retirement years while still leaving you with a cushion for later life.
In this guide, we’ll look at:
- How far $375k can realistically take you
- What lifestyle you can expect
- How the Age Pension changes your financial picture
- Ways to stretch your super
- Common pitfalls to avoid
What Happens Financially at 60?
Turning 60 is significant because you reach your preservation age, meaning you can access your super tax-free if you’ve retired. But remember the biggest challenge is making it last until Age Pension kicks in at 67.
With $375k, aiming to withdraw around $29,000–$31,000 a year gives you enough to cover expenses without depleting your balance too quickly. The key is to view super as a steady income stream, not a lump sum to spend freely.
What Retirement Costs Look Like
The ASFA Retirement Standard (March 2024) sets two main benchmarks:
- Modest lifestyle (single): ~$32,000/year
- Comfortable lifestyle (single): ~$51,000/year
These figures assume you:
- Own your home outright
- Use public health services
- Live independently
💡 With $375k, you’ll want to aim slightly under the modest lifestyle figure ideally between $29,000 and $31,000 per year so your super lasts until you can supplement it with the Age Pension.
What Happens at Age 67?
At 67, you can apply for the Age Pension, provided you meet the income and asset tests.
Full Age Pension rates (July 2024):
- Single: ~$29,000/year
- Couple: ~$43,800/year combined
By the time you reach pension age, your super balance may be reduced, increasing the chance of qualifying for full or part pension. This steady payment, combined with any remaining super, will help maintain your lifestyle well into later years.
How to Make Retirement Work on $375k at 60
✅ 1. Own Your Home
A mortgage-free home is one of the biggest factors in making retirement sustainable. Without rent or loan repayments, your $375k stretches much further.
✅ 2. Use an Account-Based Pension
Instead of withdrawing lump sums, set up an account-based pension. This provides predictable, tax-free payments while keeping your balance invested.
✅ 3. Maintain a Balanced Portfolio
Avoid putting all your money in either high-risk shares or low-return cash. A balanced mix helps protect your capital while still generating returns to offset inflation.
✅ 4. Spend Slightly Below the Modest Standard
By targeting expenses around $29,000 per year, you create a financial buffer and reduce the risk of running short before Age Pension kicks in.
✅ 5. Keep Light, Flexible Work in Mind
Even part-time or casual work in your early 60s can significantly reduce the drawdown on your super.
This Line Chart Showing $375K Super Depletion from Age 60 to 9. Visualising your super balance over time at various spending levels helps you clearly compare trade-offs. Spending less each year stretches your funds considerably.
Risks to Watch Out For
- Overspending in early years Tempting lifestyle upgrades can drain your balance quickly.
- Market volatility Keep at least a year’s expenses in low-risk investments to avoid forced selling during downturns.
- Health costs Factor in possible increases for medical, dental, and aged care services.
- Inflation creep Remember that your $375k will lose purchasing power over the decades.
Is Retiring at 60 with $375k Possible?
If you own your home, live within a modest budget, and manage your super strategically, retiring at 60 with $375k is achievable. You won’t be living a luxury lifestyle, but you can enjoy financial stability, especially once the Age Pension becomes part of your income.
📞 Wealthlab Can Help
We help Australians create personalised retirement roadmaps that maximise super, minimise risks, and ensure long-term financial security.
We can help you:
- Plan how to bridge the gap to Age Pension
- Make your super last longer
- Optimise your investment mix
- Avoid costly retirement mistakes
👉 Book your free retirement strategy session today and start planning with confidence.