Reaching age 60 with $425,000 in super puts you in a position many Australians find themselves in — not quite “financially free,” but potentially able to retire with some adjustments. So, is it enough?
Yes, but with caveats.
A $425K balance can fund a modest retirement, especially when paired with a clear strategy, access to the Age Pension, and smart drawdown planning.
What Does $425K Mean for Retirement at 60?
Let’s break it down with estimated longevity of your funds under common spending plans.
| Annual Spending | How Long $425K May Last |
|---|---|
| $30,000/year | ~16–18 years |
| $40,000/year | ~12–14 years |
| $50,000/year | ~10–12 years |
📉 Assumes a 2.4% real rate of return after inflation.
This means:
You can likely fund your retirement from age 60 to 75+ on $30K/year — and by age 67, you may qualify for the Age Pension, which can stretch your finances significantly.
Graphic:
This Line Graph Shows How Long Will $425K Super Last?” across 3 spending levels ($30K, $40K, $50K).
🏠 Lifestyle Considerations
To make retirement work on $425K:
- You’ll likely need to own your home (or have minimal rent).
- Expect a modest retirement — covering essentials, some leisure, but not luxury.
- You may need to delay big expenses (renos, new car, travel) until Age Pension kicks in.
🧾 Retirement Budget Breakdown
Here’s how a modest $30K/year budget might be allocated:
| Category | % of Budget |
|---|---|
| Housing & Utilities | 22% |
| Food & Groceries | 18% |
| Healthcare & Insurance | 15% |
| Transport (fuel, rego) | 13% |
| Leisure & Travel | 10% |
| Clothing & Personal Care | 8% |
| Bills & Communication | 7% |
| Other Essentials & Buffer | 7% |
How the Age Pension Can Help
Once you reach 67, you may qualify for full or part Age Pension. As of 2024:
- Single: up to $28,500/year
- Couple: up to $43,700/year
This can take pressure off your super and fund essentials, while your remaining balance supports travel, health, or emergencies.
Is $425K Enough to Retire at 60?
It can be — with a few key conditions:
- You’re comfortable with a modest lifestyle
- You own your home or keep housing costs low
- You avoid large withdrawals before Age Pension age
- You seek guidance to invest and draw down strategically
What You Shouldn’t Do
- Don’t treat $425K as if it’s $1M — overconfidence leads to shortfalls.
- Don’t go it alone — too many retirees miscalculate their drawdown rates or underestimate inflation.
- Don’t delay planning — starting now could add thousands to your long-term income.
How Wealthlab Helps You Get to a More Abundant Retirement
You don’t need to have millions to retire well — you need clarity, structure, and support.
At Wealthlab, we help everyday Australians:
✅ Model how long their super will last
✅ Create smart drawdown strategies
✅ Maximise Centrelink and Age Pension eligibility
✅ Plan for rising costs and lifestyle needs
✅ Turn modest savings into long-term security
Let’s turn your $425K into a well-lived retirement — without guesswork.
[Book a consultation with Wealthlab today] and build the confident future you deserve.