You’ve built up $300,000 in super and are starting to dream about an early retirement.But is it really possible to stop working and stay financially secure before the Age Pension kicks in at 67?The short answer: Yes, you can retire early with $300k but you’ll need to plan carefully. A modest lifestyle, strategic drawdowns, and a smart investment approach are essential.
Let’s break it down.
What Happens Financially When You Retire Early?
If you retire around age 60, you’ve reached preservation age and can access your super.
From 60 onwards, any income drawn from super is tax-free.
But here’s the challenge:
👉 You’ll need to fund at least 7 years of living expenses before the Age Pension starts at 67.
That means your $300k must stretch strategically during this period unless you have other assets or income sources.
What Does Retirement Cost in Australia?
According to the ASFA Retirement Standard (March 2024):
- Modest lifestyle: ~$32,000 per year (single)
- Comfortable lifestyle: ~$51,000 per year (single)
These figures assume:
- You own your home outright
- You rely on public healthcare
- You live independently without financial help
If you plan to retire early with $300k, aiming closer to $28,000–$30,000 per year makes your money last longer until Age Pension eligibility.
How Long Will $300k Last in Retirement?
Here’s a simple projection (assuming 3% investment earnings, modest spending):
| Age | Starting Balance | Withdrawal | Earnings (3%) | Ending Balance |
|---|---|---|---|---|
| 60 | $300,000 | $28,000 | $7,000 | $279,000 |
| 61 | $279,000 | $28,500 | $6,300 | $256,800 |
| 62 | $256,800 | $29,000 | $5,600 | $233,400 |
| 63 | $233,400 | $29,500 | $5,000 | $208,900 |
| 64 | $208,900 | $30,000 | $4,100 | $183,000 |
| 65 | $183,000 | $30,500 | $3,200 | $155,700 |
| 66 | $155,700 | $31,000 | $2,400 | $127,100 |
| 67 | $127,100 | – | – | $127,100 |
By 67, you’d still have around $120k+ in super which you can combine with the Age Pension for ongoing stability.
What Happens at Age 67?
At 67, you may qualify for the Age Pension, depending on your income and assets.
Current rates (July 2024):
- Single: ~$29,000 per year
- Couple (combined): ~$43,800 per year
With ~$120k left in super at 67, you can top up the pension, ensuring a modest but steady retirement for decades.
✅ How to Make Retirement Work on $300k
1. Own Your Home
Housing is your biggest expense. If you’ve paid off your mortgage, your yearly costs can drop below $30k, making early retirement more realistic.
2. Use a Super Income Stream
Convert your balance into an account-based pension instead of lump sums. This provides tax-free income, flexible drawdowns, and keeps you Age Pension–eligible.
3. Spend Below the ASFA Standard
Target ~$28,000–$30,000/year during the early years. Use senior discounts, healthcare concessions, and careful budgeting.
4. Keep Investments Working
Hold 1–2 years of cash for stability, but keep the rest in balanced or conservative growth funds. This helps fight inflation and extend your money’s life.
5. Consider Part-Time Income
Even 1–2 days of casual or freelance work can boost income and reduce pressure on your super until the Age Pension kicks in.
What Kind of Lifestyle Can You Expect?
| Category | Expectation |
|---|---|
| Housing | Own home essential |
| Travel | Local holidays, limited overseas travel |
| Healthcare | Public system, possible basic private |
| Food/Utilities | Covered with careful budgeting |
| Discretionary | Low to moderate |
With $300k and no housing costs, it’s possible to live a secure, modest lifestyle with flexibility increasing after Age Pension kicks in.
Mistakes to Avoid with Early Retirement on $300k
❌ Withdrawing large lump sums from super
❌ Forgetting about inflation or rising healthcare costs
❌ Overestimating investment returns
❌ Assuming full Age Pension too early
❌ Not getting professional financial advice
Need Help Stretching Your Super?
At Wealthlab, we help Australians with modest super balances retire with confidence. Whether you’re planning early retirement or already there, our retirement experts can help you:
✔️ Build a super drawdown strategy
✔️ Model your retirement income over decades
✔️ Maximise Age Pension support
📞 Book a free consultation and discover how far your $300k can go.
Learn More About Retirement & Superannuation
https://www.superannuation.asn.au/consumers/retirement-standard/
https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super