You’ve built up $390,000 in super and are considering saying goodbye to full-time work at 60. The question is: Can I retire at 60 with this amount? The short answer is yes but only with careful planning. Retiring at 60 means you’ll need to self-fund your living costs for seven years until the Age Pension starts at 67. With a modest budget, smart investment choices, and careful use of your super, $390K can form a solid foundation for a comfortable retirement.
In this guide, we’ll explore:
- How long $390K can last in retirement
- The lifestyle it can support
- Changes that occur when the Age Pension begins
- Strategies to stretch your super further
- Risks to avoid for long-term security
What Happens Financially at 60?
Reaching 60 is significant it’s your preservation age, allowing tax-free access to your super if you’ve retired. However, this also comes with a challenge: your super must cover all expenses until government support begins at age 67.
If you own your home and manage withdrawals around $31,000–$32,000 per year, your super can last until Age Pension eligibility while still leaving some funds for later life. The key is turning your lump sum into a predictable income stream instead of depleting it too quickly.
What Retirement Costs Look Like
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:
- Homeownership without mortgage
- Use of public healthcare
- Independent living
💡 With $390K, sticking to a modest lifestyle (~$31,000 annually) is practical. This ensures room for inflation, emergencies, and market fluctuations.
What Happens at Age 67?
At 67, you may qualify for the Age Pension, depending on assets and income tests. Full pension rates (July 2024) are:
- Single: ~$29,000/year
- Couple: ~$43,800/year combined
By pension age, your super balance will have decreased, which may increase your eligibility for a full or partial pension. Combined with remaining super, this can provide stable income into your 80s and 90s if spending remains consistent.
How to Make Retirement Work on $390K at 60
1. Own Your Home
Housing is often the largest retirement expense. Owning your home outright eliminates mortgage or rent payments, freeing your super for essentials, leisure, and unexpected costs. This gives you greater control and peace of mind.
2. Use an Account-Based Pension
Converting your super into an account-based pension provides regular, tax-free income while keeping the remaining balance invested. This helps your money continue growing while ensuring predictable cash flow for day-to-day expenses.
3. Diversify Your Investments
Avoid putting all your super into one asset. Diversifying into a mix of low-cost, inflation-adjusted investments can provide steady growth and reduce risk. Consider a combination of shares, bonds, and conservative options tailored to your risk tolerance.
4. Limit Early Withdrawals
Be strategic with early withdrawals. Setting a drawdown rate that covers your essential expenses can make your super last until the Age Pension starts and beyond.
5. Consider Part-Time Work
If possible, phased retirement or part-time work can bridge the income gap until Age Pension eligibility. This reduces pressure on your super and allows you to maintain financial stability.
Tips to Stretch Your Super Further
- Track your spending carefully and stick to a modest budget
- Reassess your investments every few years
- Plan for inflation and unexpected medical costs
- Access government benefits when eligible
- Seek advice from a retirement planner
How Wealthlab Can Help You Retire at 60
Super alone doesn’t determine your retirement outcome—strategy does. At Wealthlab, we help Australians:
✅ Forecast how long their super will last
✅ Build personalised retirement plans
✅ Access Age Pension and other government benefits
✅ Strategically draw down super for steady income
✅ Maximise investment growth while reducing risk
Book a free consultation today and discover how to make your $390K super work smarter, so you can retire at 60 with confidence and clarity.
How Wealthlab Can Help You Retire at 60
Super alone doesn’t determine your retirement outcome strategy does. At Wealthlab, we help Australians:
✅ Forecast how long their super will last
✅ Build personalised retirement plans
✅ Access Age Pension and other government benefits
✅ Strategically draw down super for steady income
✅ Maximise investment growth while reducing risk
Book a free consultation today and discover how to make your $390K super work smarter, so you can retire at 60 with confidence and clarity.