Retirement strategy is essential when it comes to planning your future. One of the most common questions Australians ask is: Is $700K enough to retire on? The answer depends on your spending habits, investment approach, and whether you’ll receive government support like the Age Pension.
In this guide, we’ll explore how to build a retirement strategy that ensures your savings last and your lifestyle stays comfortable.
Why Your Retirement Strategy Matters
Without a plan, your savings could run out faster than expected. A good retirement strategy considers:
- Your lifestyle goals – travel, hobbies, home upgrades
- Your expected expenses – healthcare, living costs, emergencies
- Your income sources – superannuation, investments, Age Pension
The earlier you plan, the more control you have over your financial future.
Is $700K Enough?
For many people, yes but only with the right retirement strategy. If you plan to spend around $60,000 per year, $700K could last roughly 12 years without investment growth. With smart investing and partial Age Pension support, you could stretch it much longer even 25–30 years.
Using the Age Pension in Your Strategy
The Age Pension can play a big role in your retirement strategy:
- Eligibility Age: 67 for most Australians
- Full Pension: Available if income/assets are under set limits
- Part Pension: Available if your savings are above those limits
If you retire at 60, you’ll need to self-fund until you’re eligible at 67, then combine your savings with pension payments to create a stable income.
Key Elements of a Smart Retirement Strategy
- Invest for Long-Term Growth
Keep part of your portfolio in shares or growth assets to help outpace inflation. - Diversify Your Income
Use a mix of super withdrawals, investments, and pension payments. - Control Your Expenses
Track your spending and adjust your budget if needed. - Consider Downsizing
Freeing up home equity can add to your retirement savings. - Review Your Plan Regularly
Life changes and so should your retirement strategy.
Example: Retiring at 60 with $700K
- Age 60–67: Live off investments and super withdrawals
- Age 67+: Supplement income with Age Pension + investment returns
- Outcome: With a balanced portfolio returning ~5% p.a., funds can last 25–30 years
A strong retirement strategy is about more than a dollar amount. It’s about knowing your goals, managing your resources, and making adjustments along the way. Whether $700K is enough depends on how you plan, spend, and invest.
If you want peace of mind, speak to a financial adviser and create a personalised retirement strategy that lets you enjoy the freedom you’ve earned.
The key is planning so that your $700K bridges the gap until government support starts, while ensuring it lasts through your retirement years.
Below is a simplified estimate:
| Annual Spending | How Long It May Last (Years) |
|---|---|
| $30,000 | 28–30 years |
| $40,000 | 22–25 years |
| $50,000 | 17–20 years |
📌 Assumes 2.4% inflation-adjusted return, drawdown from age 60.
If you’re living a modest lifestyle and own your home, $700K plus the Age Pension can stretch far. But for more travel, luxury, or rising healthcare needs it pays to plan in detail.
Graphic:
This Line chart showing how $700K depletes over time under three different annual spending levels ($30K, $40K, $50K)
The Role of Age Pension
If you retire at 60, you won’t be eligible for the Age Pension until 67. Between 60–67, you’ll need to self-fund entirely from your super or savings. After that, you may qualify for:
- Full Age Pension if assets/income are within limits
- Part Pension if your super exceeds thresholds
This means your $700K doesn’t need to last forever just long enough to bridge the gap and supplement Age Pension later.
🏡 What Kind of Lifestyle Does $700K Support?
According to the ASFA Retirement Standard, the average annual costs in Australia are:
| Lifestyle Type | Single Person | Couple |
|---|---|---|
| Modest lifestyle | ~$32,000 | ~$46,000 |
| Comfortable lifestyle | ~$51,000 | ~$72,000 |
$700K could comfortably fund:
- A modest lifestyle for 30+ years
- A comfortable lifestyle for 17–20 years (especially when combined with Age Pension)
Factors That Affect How Long $700K Lasts
- Retirement Age: Earlier retirement = longer funding period
- Spending Levels: Travel, hobbies, and healthcare costs can accelerate drawdown
- Investment Returns: Better returns = longer-lasting savings
- Inflation: Can reduce purchasing power over time
- Eligibility for Age Pension: Lowers reliance on super over time
Is $700K Enough for Retirement?
- Minimise debt before retiring
- Invest strategically to generate modest returns after inflation
- Delay big withdrawals in early retirement
- Consider part-time work or phased retirement
- Access professional advice to reduce tax and structure withdrawals
Realistic Projection at $40,000/year Spending
If you withdraw $40K annually, here’s a simplified outlook:
| Age | Remaining Balance |
|---|---|
| 60 | $700,000 |
| 65 | ~$580,000 |
| 70 | ~$440,000 |
| 75 | ~$285,000 |
| 80 | ~$120,000 |
| 85 | ~$0 |
Assumes 2.4% real return annually, no Age Pension offset
✅ Final Thoughts: Will $700K Be Enough?
Yes, $700K can fund a fulfilling retirement in Australia, especially if you manage your spending and qualify for Age Pension after 67. The key is planning not just how much you withdraw, but when and how.
Whether you want to retire comfortably or modestly, $700K can be enough but only with a personalised, flexible strategy.
How Wealthlab Can Help You Retire Smarter
Having $700K in super is a great start but what really matters is what you do next.
At Wealthlab, we work with Australians to:
- Build personalised drawdown and investment strategies
- Navigate Age Pension eligibility and planning
- Extend retirement savings without compromising lifestyle
- Map out year-by-year forecasts based on your real goals
You don’t have to guess or worry. Let’s build a retirement that works for your lifestyle and your future.
Book a consultation today and take control of your retirement journey with confidence.