Retiring at 60 with $500,000 in superannuation is achievable for many Australians. However, whether it will support the retirement lifestyle you envision depends on factors like your cost of living, eligibility for the Age Pension, investment returns, and how long you expect to live. In this guide, we break it all down and offer strategies to help you make $500K last.
Quick Overview
- $500K can fund a modest to moderate lifestyle if well-managed
- You may still need to bridge a 7-year gap before Age Pension kicks in
- Reducing expenses, using part-time work, or downsizing can help
- Planning your investment strategy is critical to outpace inflation
How Long Will $500K Last in Retirement?
Let’s look at how long your savings might last based on annual spending:
| Annual Spending | Estimated Longevity of $500K |
|---|---|
| $30,000 | ~17–20 years |
| $40,000 | ~13–16 years |
| $50,000 | ~10–13 years |
🧠 Assumes 5% average annual return and 2.5% inflation.
What Lifestyle Can $500K Support in Australia?
According to the ASFA Retirement Standard (2024):
- Modest lifestyle (single): ~$32,000/year
- Comfortable lifestyle (single): ~$51,000/year
With $500K:
- A modest lifestyle is quite achievable
- A comfortable lifestyle may be possible short-term or with added income
⏳ Age Pension Eligibility: The 7-Year Gap
Australians generally qualify for the Age Pension at 67. If you retire at 60, you’ll need to bridge a 7-year funding gap using:
- Superannuation withdrawals
- Personal savings/investments
- Casual or part-time income
Remember: you must meet preservation age to access your super. At 60, you generally can withdraw from super if you’ve retired from the workforce.
💸 How to Make $500K Go Further
1. Use a Transition to Retirement (TTR) Strategy
If you’re still working part-time, you can access a portion of your super to top up income while continuing to contribute to super.
2. Invest for Growth & Income
Low-risk doesn’t always mean safe. Ensure your portfolio includes a mix of growth assets and income-producing investments that protect against inflation.
3. Review Your Expenses
Track your spending and cut unnecessary costs. Focus on areas like subscriptions, dining out, or energy use.
4. Consider Downsizing
Selling a larger home and moving to a smaller, more affordable property may unlock capital to boost your super or savings.
On average, a modest retirement lifestyle in Australia costs around $32,000 per year. A more detailed breakdown of typical expenses is shown in the chart below.
Risks of Retiring at 60 with $500K
| Potential Risk | Why It Matters |
|---|---|
| Outliving your savings | Australians often live well into their 80s |
| Inflation eating into purchasing power | $500K today won’t be worth the same in 15–20 years |
| Market volatility | Poor investment returns early in retirement can hurt long-term balance |
✅ Final Verdict: Is $500K Enough to Retire at 60?
Yes — but not without a plan.
If you’re comfortable with a modest lifestyle, are eligible to access your super, and potentially open to part-time work or downsizing, $500K can provide a pathway to a secure retirement at 60.
We strongly recommend speaking to a financial adviser to tailor a retirement plan that works for your specific goals.