For many Australians, $500,000 in superannuation or retirement savings can be enough to stop working — especially if you’re retiring at or after age 60 and expect to receive some Age Pension support later on. That said, $500K is not a golden ticket to a luxurious lifestyle. It’s better suited for those willing to prioritise security over luxury.
Let’s unpack what $500K can realistically support.
How Long Will $500K Last in Retirement?
Here’s an estimate based on average investment returns (2.4% real return) and annual spending:
| Annual Spending | How Long It May Last |
|---|---|
| $30,000/year | ~17–20 years |
| $40,000/year | ~13–16 years |
| $50,000/year | ~10–13 years |
Assumes inflation-adjusted drawdown starting at retirement age.
If you retire at 60, $500K might last into your early to mid-80s — long enough for many Australians.
What Kind of Lifestyle Can $500K Support?
According to ASFA (2024–25):
- A modest retirement costs ~$32,000/year (single)
- A comfortable retirement costs ~$51,000/year (single)
$500K is typically enough for a modest lifestyle, particularly if:
- You own your home
- You’re debt-free
- You’re open to budgeting and limiting discretionary spending
Can You Access the Age Pension?
Yes — and it helps.
At age 67, many Australians with $500K will:
- Start to qualify for a part Age Pension
- Eventually qualify for the full Age Pension (~$28,500/year for singles)
That means your $500K doesn’t have to last forever — it just needs to bridge the years until government support kicks in.
How to Make $500K Work for Retirement
- Own Your Home – No rent/mortgage = lower living costs
- Invest Smartly – Keep a balanced mix of income + growth
- Stick to a Budget – Prioritise essentials, reduce lifestyle creep
- Delay Retirement – Working just 2–3 more years can make a big difference
- Account-Based Pension – Draw tax-free income from super after 60
Risks of Retiring with $500K
| Risk | Why It Matters |
|---|---|
| Outliving savings | Especially if you live into your 90s |
| Inflation | $30K/year today won’t stretch as far in 15 years |
| Unexpected expenses | Medical costs, home repairs, aged care |
| Low investment returns | Overly conservative investing may shrink nest egg |
Final Verdict: Is $500K Enough to Retire?
Yes — $500K is enough for a modest retirement in Australia for many people, provided:
- You own your home
- You retire at or after 60
- You budget carefully
- You take advantage of the Age Pension
Many Australians retire with less than $500K and live securely — it’s not about how much you have, but how well you plan and spend it.