Is $400K super enough to retire at 60? Yes, but it will be a modest retirement, and you will need a plan. $400,000 in superannuation is close to the average balance for Australians in their early 60s, so you are far from alone in asking this question. If you own your home, budget carefully and understand how the Age Pension works from 67, $400K can support a secure retirement. Without a plan, it can run out well before you need it to.
The reality is that $400,000 in super needs to cover seven years of living expenses before the Age Pension starts. That gap between 60 and 67 is where the real planning happens. This guide walks through how far $400K goes, how much pension $400K will buy you from 67, the best way to invest $400K for retirement income, and whether 60 is genuinely the best age to retire on this balance.
How long will $400,000 last in retirement?
This is the question that matters most, and the answer comes down to how much you spend each year.
Please note: All figures, projections and scenarios in this article are approximate and for illustrative purposes only. Individual outcomes will vary based on personal circumstances, investment returns, fees and current government policy. This is general information, not personal advice.
Here is a realistic look at how $400K could last at three different spending levels, assuming a balanced investment return of around 5% per annum (after fees) and adjusting for inflation:
| Annual spending | How long $400K lasts | Age your super runs out |
|---|---|---|
| $25,000/year | 20 to 25 years | Early to mid 80s |
| $30,000/year | 16 to 19 years | Late 70s to early 80s |
| $40,000/year | 11 to 14 years | Early to mid 70s |
These estimates assume you are drawing from super only, with no Age Pension until 67. Once you start receiving the Age Pension, your super drawdowns drop significantly and the remaining balance lasts much longer.
The key takeaway: if you can keep your spending to around $28,000 to $32,000 a year during the gap years (60 to 67), your $400K should bridge you through to the Age Pension with a reasonable buffer left over.
How much pension will $400K buy from age 67?
This is the question Google’s data tells us people are actually searching for, and the answer is better than most expect.
At $30,000 a year in spending from 60 to 67, you would draw down roughly $210,000 over those seven years (allowing for investment growth on the remaining balance). That would leave you with somewhere around $190,000 to $220,000 at age 67.
A single homeowner with assessable assets under $321,500 qualifies for the full Age Pension. For homeowner couples, the threshold is $481,500 (current as at 20 March 2026). So if you arrive at 67 with around $200,000, you are very likely to qualify for the full or close to full Age Pension.
The full Age Pension from 20 March 2026 pays $1,200.90 per fortnight for singles ($31,223 a year) and $1,810.40 per fortnight for couples combined ($47,070 a year).
Source: Services Australia. These figures are set by the Australian Government and are updated each March and September.
So how much pension will $400K buy? The answer is: $400K itself doesn’t buy you a pension directly, but by drawing it down carefully over seven years, you arrive at 67 with a balance low enough to qualify for close to the full Age Pension. For a single homeowner, that’s $31,223 a year in pension income plus a modest super top-up of $5,000 to $8,000 a year from remaining super. Total income: approximately $36,000 to $39,000 a year from 67 onwards. For a couple, $47,070 in pension income plus a similar super top-up brings total household income to roughly $52,000 to $55,000.
Phil and Scott covered this exact scenario in their episode on how the Age Pension really works with real case studies. Phil and Dan also covered commonly missed Age Pension opportunities in Episode 20.
What is the best way to invest $400K in retirement?
The best way to invest $400K in Australia for retirement income comes down to three things: keeping growth in your portfolio, managing risk through the gap years, and not making fear-based decisions.
Set up an account-based pension. Instead of taking lump sums from your super, roll it into an account-based pension. This gives you regular, tax-free income from age 60, keeps your money invested, and helps you control your drawdown rate. It’s also more favourable for Age Pension assessment when the time comes.
Keep some growth in your investment mix. Shifting everything to cash or term deposits feels safe but costs you over the long run. A balanced approach with around 50 to 60% in growth assets (shares and property) and 40 to 50% in defensive assets (bonds and cash) gives you the growth to outpace inflation while protecting against major market falls. A conservative portfolio returning 3 to 4% per year on $400K generates $12,000 to $16,000 in income. A balanced portfolio returning 5 to 6% generates $20,000 to $24,000. Over 25 years, that difference compounds into a very different retirement.
Scott and Phil discussed this in detail in Episode 1 of the podcast, showing how a conservative portfolio can run out 15 years earlier than a growth one on the same spending. Phil also pointed out in Episode 22 that what most super funds call “balanced” is really a growth portfolio with 70% or more in growth assets, so it’s worth checking what you’re actually invested in.
Hold one to two years of expenses in cash. This is your buffer against bad markets. If shares drop 20% in year one of retirement (sequencing risk), you draw from your cash buffer instead of selling investments at a loss. Top up the buffer when markets recover. This single strategy protects against the most dangerous risk for early retirees with modest balances.
For more on structuring your investments in retirement, see our superannuation page.
Is 60 the best age to retire with $400K?
The GSC data shows people are searching “what is best age to retire” and “best time of year to retire” alongside $400K queries. Both are worth addressing honestly.
What is the best age to retire on $400K?
There’s no single best age, but 60 is the earliest it’s realistic on $400K, and only if you own your home. The reason is the seven-year gap to the Age Pension. Every year you delay retirement from 60, you add employer contributions, one more year of investment growth, and one fewer year of drawdown. The impact is significant.
Retiring at 62 instead of 60 with $400K means roughly two more years of super contributions ($12,000 to $24,000 depending on salary), two fewer years of drawdown (saving $56,000 to $60,000 in spending from super), and arriving at 67 with potentially $100,000 more in super.
Scott and Phil covered the maths on this in Episode 19 of the podcast, showing how retiring just one year earlier can shift funding from lasting to age 105 to running out at 79.
If $400K is your balance and you’re wondering whether to retire now or keep working a bit longer, even one or two more years of part-time work makes a substantial difference. 60 is possible. 62 to 63 is more comfortable. 65 is considerably easier. The best age to retire is when your balance, spending and lifestyle expectations align, and a retirement planning session can model exactly where that point is.
Does it matter what time of year you retire?
Yes, it can. The best time of year to retire in Australia depends on your tax position and super contribution timing.
Retiring at the end of a financial year (late June) means you’ve received the full year’s employer super contributions, you can claim a full year of salary sacrifice or personal deductible contributions, and your taxable income for that year may be lower if you only worked part of it, which can reduce CGT on any investment sales.
Retiring in the first half of a financial year (July to December) means you start drawdown earlier but may miss out on a full year of contributions. If you’re planning to sell an investment property or make catch-up contributions, timing around 30 June can save thousands.
Phil and Dan covered CGT timing for people selling investment property near retirement in Episode 10, showing how the difference between selling in your last working year versus your first retirement year can be $25,000 in tax.
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How $400,000 plays out year by year
Here is a simplified projection for a single homeowner spending $30,000 a year, with a balanced investment return of 5% per annum:
| Age | Super balance (start of year) | Annual drawdown | Age Pension income | Total income |
|---|---|---|---|---|
| 60 | $400,000 | $30,000 | $0 | $30,000 |
| 63 | $325,000 | $30,000 | $0 | $30,000 |
| 67 | $210,000 | $5,000 | $31,000 | $36,000 |
| 72 | $195,000 | $5,000 | $31,000 | $36,000 |
| 80 | $160,000 | $5,000 | $31,000 | $36,000 |
These numbers are approximate and assume steady returns, which does not happen in real life. But the pattern is clear: your super carries you through the gap years, and then the Age Pension does most of the heavy lifting from 67 onwards.
Want to run your own numbers? Try the free Wealthlab super calculator to see how your balance, spending and Age Pension interact. For a broader readiness check, take the retirement quiz.
Frequently asked questions
Is $400K super enough to retire on in Australia?
For homeowners who budget carefully, yes. $400K is around the average super balance for Australians in their early 60s. Combined with the Age Pension from age 67, it can fund a modest but secure retirement into your late 80s. You will need to keep spending around $28,000 to $32,000 a year in the gap years.
How much pension will $400K buy?
$400K doesn’t directly buy a pension, but drawing it down carefully over seven years leaves you with around $200,000 at 67. At that balance, a single homeowner qualifies for close to the full Age Pension of $31,223 a year. A couple would qualify for close to the full couple pension of $47,070 a year. Combined with modest super top-ups, total income from 67 is approximately $36,000 to $55,000 depending on your household situation.
What’s the best way to invest $400,000 in Australia for retirement?
For most retirees, an account-based pension with a balanced investment mix (50 to 60% growth assets, 40 to 50% defensive) is the most effective structure. It keeps your money invested and growing, provides tax-free income from age 60, and allows you to control your drawdown rate. Holding one to two years of expenses in cash protects against poor market timing. Shifting everything to cash or term deposits feels safe but typically costs tens of thousands over a 25-year retirement.
What is the best age to retire in Australia?
There’s no single best age. It depends on your super balance, spending needs, home ownership and health. On $400K, retiring at 60 is possible but tight. Every year you delay adds contributions and reduces drawdown pressure. Retiring at 62 to 63 is noticeably more comfortable. At 65, only a two-year gap to the Age Pension makes things considerably easier. The best age is when your balance and spending expectations align.
What is the best time of year to retire in Australia?
Retiring late in the financial year (around June) means you capture a full year of employer super contributions and can maximise salary sacrifice or personal deductible contributions for that year. It also positions you to manage CGT on any investment sales in a lower-income year. If you’re planning to sell an investment property or make catch-up contributions, timing around 30 June can save thousands.
Is $400,000 enough to retire on without owning a home?
It is much harder. Rent adds $15,000 to $25,000 a year to your expenses, which means $400K could run out before the Age Pension starts. If you are renting, consider downsizing to a cheaper area, working part-time in the early retirement years, or exploring whether downsizer contributions from selling a property could boost your position.
Can I retire with $400K and still get the Age Pension?
Yes. The Age Pension starts at 67 and is means-tested. If you have been drawing down your super between 60 and 67, your remaining balance at 67 will likely be low enough to qualify for a full or substantial part pension. A single homeowner with assets under $321,500 gets the full pension. A couple under $481,500 also qualifies (current as at March 2026).
How can I make $400K last longer in retirement?
The most effective strategies are owning your home (removes rent from the equation), keeping spending below $30,000 a year in the gap years, maintaining a balanced investment mix rather than going all cash, holding one to two years of expenses as a cash buffer for market dips, and doing some casual work in the early years. For more on structuring your retirement income, see our pension and Centrelink page.
Your next step
$400,000 is not a huge amount, but it is not a small amount either. With the right plan for the gap years and a clear path to the Age Pension, it can support a secure, modest retirement for decades.
If any of this has raised questions about your own situation, book a free chat with the Wealthlab team. No pressure, no jargon.