s $400K super enough to retire at 60? For many homeowners, yes, but it funds a modest retirement and the plan matters as much as the balance. $400,000 is close to the average super balance for Australians in their early 60s, so this is one of the most common questions we hear. For a homeowner who budgets carefully and understands how the Age Pension works from 67, $400K can support a secure retirement. Without a plan, it can run out well before it needs to.
The core challenge is simple: $400,000 has 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 long $400K lasts at different spending levels, how much income it leads to from 67, how the numbers change at 62 or 65, and the investment decisions that make the biggest difference at this balance.
How long will $400,000 last in retirement?
This is the question that matters most, and the answer comes down to annual spending.
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 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 a year | 20 to 25 years | Early to mid 80s |
| $30,000 a year | 16 to 19 years | Late 70s to early 80s |
| $40,000 a year | 11 to 14 years | Early to mid 70s |
These estimates assume drawing from super only, with no Age Pension until 67. Once the Age Pension starts, super drawdowns drop sharply and the remaining balance lasts much longer.
The pattern we see with clients at this balance: keeping spending to around $28,000 to $32,000 a year through the gap years (60 to 67) is what lets $400K bridge through to the Age Pension with a buffer left over. For context, ASFA’s March 2026 quarter Retirement Standard puts a modest single lifestyle at $36,434 a year and a modest couple lifestyle at $52,473, both assuming home ownership (source: ASFA, current as at August 2026). Gap-year spending on $400K sits below even the modest benchmark, which is the honest trade-off of retiring at 60 on this balance rather than working a little longer.
How much income will $400K lead to from age 67?
The answer is better than most people expect, because of how the Age Pension assets test works.
At $30,000 a year in spending from 60 to 67, the drawdown over those seven years is roughly $210,000 after allowing for investment growth on the remaining balance. That leaves somewhere around $190,000 to $220,000 at age 67.
From 1 July 2026, a single homeowner with assessable assets under $333,000 qualifies for the full Age Pension, and the threshold for homeowner couples is $499,000 combined (source: Services Australia. These figures are set by the Australian Government; the full pension thresholds are reviewed each July). Arriving at 67 with around $200,000 means qualifying for the full or close to full Age Pension.
The full Age Pension currently pays $1,200.90 per fortnight for singles (about $31,223 a year) and $1,810.40 per fortnight for couples combined (about $47,070 a year), current as at 20 March 2026 (source: Services Australia. Payment rates are updated each March and September).
So the picture from 67 for a single homeowner is roughly $31,223 in pension income plus a modest super top-up of $5,000 to $8,000 a year, for a total of around $36,000 to $39,000. That lands almost exactly on ASFA’s modest single standard of $36,434, which is why this path works: the tight years are 60 to 67, and the position actually improves once the pension starts. For a couple, $47,070 in pension income plus a similar top-up brings household income to roughly $52,000 to $55,000, right around the modest couple benchmark.
Phil and Dan covered this exact mechanic in the podcast episode on how the Age Pension really works, with worked case studies of the assets and income tests, and walked through commonly missed pension opportunities in Episode 20.
Can I retire at 62 or 65 with $400K instead?
Every year past 60 changes the maths more than most people expect, because three things move at once: contributions keep coming in, the balance keeps growing, and the drawdown period shortens.
Retiring at 62 with $400K means roughly two more years of employer contributions ($12,000 to $24,000 depending on salary), two fewer years of drawdown (around $56,000 to $60,000 less drawn from super) and two more years of investment growth. The combined effect is arriving at 67 with potentially $100,000 more than the retire-at-60 path, which turns a tight modest retirement into a noticeably more relaxed one.
Retiring at 65 with $400K leaves only a two year gap to the Age Pension. Drawing $30,000 a year for two years takes roughly $60,000 out, so the balance at 67 is still around $360,000 to $370,000 after growth. That is above the $333,000 full pension threshold for a single homeowner, so the starting point is a part pension rather than the full rate, but the combined income from a larger super balance plus a part pension is comfortably higher than the retire-at-60 path.
Scott and Phil covered the maths of retirement timing in Episode 19 of the podcast, including how retiring just one year earlier shifted one modelled retirement from being funded to age 105 to running out at 79. Scott’s view on the podcast is blunt: having more money at retirement than less is less of a problem.
What is a sensible way to invest $400K in retirement?
We generally find three decisions do most of the work at this balance: the structure, the investment mix, and a buffer against bad timing.
The account-based pension structure. Most retirees at this balance roll their super into an account-based pension rather than taking lump sums. It provides regular, tax-free income from age 60, keeps the money invested, and gives control over the drawdown rate. It also tends to sit more favourably within the Age Pension assessment when the time comes.
The investment mix. Shifting everything to cash or term deposits feels safe but tends to cost heavily over a long retirement. A conservative portfolio returning 3 to 4% per year on $400K generates $12,000 to $16,000 in earnings. 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 walked through this in Episode 1 of the podcast: a couple with $500K spending $75K a year saw a growth portfolio fund retirement into their late 90s, while a conservative one ran out 15 years earlier. Phil also pointed out in Episode 22 that what most funds label “balanced” is really a growth portfolio with 70% or more in growth assets, so it is worth checking what the money is actually invested in.
The cash buffer. A common approach among retirees with modest balances is holding one to two years of expenses in cash. If shares drop 20% in the first year of retirement (sequencing risk), income comes from the buffer instead of selling investments at a loss, and the buffer is topped up when markets recover. Sequencing risk is the single most dangerous risk for early retirees at this balance, and the buffer is the simplest defence against it.
For more on structuring super in retirement, see our superannuation page.
Does it matter what time of year you retire?
It can. The timing question usually comes down to tax and contributions.
Retiring at the end of a financial year (late June) means the full year’s employer contributions have landed, a full year of salary sacrifice or personal deductible contributions can be claimed, and taxable income for that year may be lower if only part of it was worked, which can reduce CGT on any investment sales.
Retiring in the first half of a financial year means drawdown starts earlier but a full year of contributions may be missed. For anyone planning to sell an investment property or make catch-up contributions, timing around 30 June can be worth thousands. Phil and Dan walked through a real case on this in Episode 10: selling an investment property in the last working year cost $98K in CGT, delaying to the first retirement year dropped it to $73K, and adding catch-up contributions brought it down to $11K.
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: super carries the gap years, then the Age Pension does most of the heavy lifting from 67 onwards.
Want to run your own numbers? The free Wealthlab super calculator shows how your balance, spending and Age Pension interact.
Frequently asked questions
Is $400K super enough to retire on in Australia?
For homeowners who budget carefully, yes. $400K is around the average balance for Australians in their early 60s. Combined with the Age Pension from 67, it can fund a modest but secure retirement into the late 80s. The trade-off is gap-year spending of roughly $28,000 to $32,000 a year, which sits below ASFA’s modest single benchmark of $36,434.
How long will $400,000 last in retirement?
At $25,000 a year it can last 20 to 25 years, at $30,000 a year around 16 to 19 years, and at $40,000 a year only 11 to 14 years, assuming a balanced return of about 5% per annum. Once the Age Pension starts at 67, drawdowns fall sharply and the remaining balance lasts far longer than these super-only figures suggest.
How much pension will $400K lead to?
Drawing $400K down carefully from 60 leaves roughly $200,000 at 67. From 1 July 2026, a single homeowner with assessable assets under $333,000 qualifies for the full Age Pension of about $31,223 a year, and a homeowner couple under $499,000 combined qualifies for the full couple rate of about $47,070. Combined with modest super top-ups, total income from 67 is approximately $36,000 to $55,000 depending on household situation.
Can I retire at 62 with $400K?
Retiring at 62 rather than 60 adds around two years of contributions and growth and removes two years of drawdown, which can mean arriving at 67 with roughly $100,000 more. The same modest retirement becomes noticeably more comfortable. Whether the extra working years are worth it depends on health, work situation and spending expectations.
Is $400K enough to retire at 65?
At 65 the gap to the Age Pension is only two years, so $400K stretches much further. Arriving at 67 with around $360,000 means a part pension rather than the full rate for a single homeowner, but the combined income from the larger balance plus a part pension is higher than the retire-at-60 path. Of the three ages, 65 is the easiest on this balance.
What is a sensible way to invest $400,000 for retirement income?
Most retirees at this balance use an account-based pension with a mix of growth and defensive assets, which provides tax-free income from 60 while keeping the money invested. A cash buffer of one to two years of expenses is a common protection against poor market timing. Whether any particular structure suits your situation depends on individual factors, and a licensed financial adviser can help weigh them up.
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 expenses, which means $400K could run out before the Age Pension starts. Options some renters in this position look at include relocating to a cheaper area, part-time work in the early retirement years, and Rent Assistance eligibility from 67. Non-homeowners also have higher Age Pension asset thresholds ($600,000 for a full pension as a single, from 1 July 2026).
Can I retire with $400K and still get the Age Pension?
Yes. The Age Pension starts at 67 and is means-tested, and drawing down super between 60 and 67 usually leaves a balance low enough to qualify for a full or substantial part pension. From 1 July 2026, a single homeowner with assets under $333,000 receives the full pension, and a homeowner couple under $499,000 combined. For more on how the tests work, see our pension and Centrelink page.
How can I make $400K last longer in retirement?
The levers that matter most are home ownership (removing rent from the equation), gap-year spending kept near $30,000 a year, an investment mix that retains growth assets rather than going all cash, a one to two year cash buffer against market dips, and some casual work in the early years. Each extra year of part-time income roughly doubles up: money coming in and money not being drawn out.
Your next step
$400,000 is not a huge amount, but it is not a small amount either. With a 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.
