Retiring at 62 with $445,000 in superannuation is possible but it requires careful planning, realistic expectations, and smart financial decisions. While this amount may not support a luxury lifestyle for three decades, it can provide a comfortable and modest retirement especially if you own your home and combine smart super drawdowns with government support like the Age Pension, available from age 67.
How Long Will $445K Last When Retiring at 62?
The longevity of your super depends on how much you plan to spend annually. Using a modest 2.5% inflation-adjusted return, here’s what you can expect:
| Annual Spending | Estimated Longevity |
|---|---|
| $20,000/year | ~33–34 years |
| $25,000/year | ~26–28 years |
| $30,000/year | ~22–23 years |
With conservative spending and smart drawdown strategies, your $445K could comfortably support your retirement well into your 80s.
Retiring at 62: Budget Breakdown for a $25K Lifestyle
Here’s an example of how a $25,000 annual budget might be allocated:
| Category | Estimated % |
|---|---|
| Housing & Utilities | 25% |
| Food & Groceries | 20% |
| Healthcare | 15% |
| Transport | 10% |
| Insurance | 10% |
| Travel & Leisure | 10% |
| Miscellaneous | 10% |
This allocation assumes you own your home. Renters may need to adjust their budget or consider downsizing to make the super last longer.
Retiring at 62: The Advantage of Homeownership
Owning your home can significantly reduce your financial stress in retirement. With no rent or mortgage to pay, your fixed expenses drop, freeing up more of your super for essentials, healthcare, or occasional leisure activities.
If you don’t own your home, careful planning is crucial. Consider downsizing, relocating to a more affordable area, or supplementing income through part-time work to maintain a comfortable lifestyle.
See how you can retire at 62 with $445K comfortably, wisely, and confidently.
Retiring at 62: Smart Planning Tips
- Delay large withdrawals until after Age Pension eligibility at 67.
- Invest conservatively to achieve modest, inflation-adjusted returns (~2.5%).
- Use your super drawdowns wisely to avoid outliving your money.
- Consider phased retirement or part-time work for additional income.
- Check your Age Pension eligibility even with super, many retirees qualify.
Retiring at 62: How Wealthlab Can Help
Planning a secure retirement doesn’t have to be overwhelming. At Wealthlab, we help Australians:
✅ Understand how far their super can stretch
✅ Create a retirement plan based on realistic spending and income
✅ Maximise returns and minimise tax impact
✅ Prepare for Age Pension eligibility
✅ Gain confidence and clarity for a stress-free retirement