Updated 15 Sep 2026
“I’ve been thinking about retiring at 60. Can I actually, do it?”
It is a question I hear a lot as a financial advisor and it’s a great age to retire if you can do it. Especially because you are still young enough to really enjoy your new found freedom.
Have you started picturing what life could look like beyond full-time work and begun asking the big questions? When should I retire? Will I have enough? When can I withdraw super? What will retirement actually feel like?
Everyone approaches retirement differently, and no two journeys are the same. For some, it’s about spending more quality time with family. For others, it’s the chance to finally pursue travel dreams, give back to the community, or simply slow down and take a well-earned breath after decades of hard work.
No matter where you are on the path to retirement, one thing is clear: retiring at 60 in Australia is often possible but it requires the right plan and the right questions.
In this blog, you’ll explore the key questions that people often wonder about when retiring at 60 in Australia and learn how to navigate them in a way that fits your unique lifestyle and future plans.
What Lifestyle Do You Want in Retirement?
This might seem like a light or abstract question but in reality, it’s one of the most important questions to ask.
Retirement isn’t just an exit from work, it’s the beginning of something new. So, take a moment to consider: What does a meaningful retirement look like for you?
- Do you want to travel and explore new places?
- Spend more time with your kids or grandkids?
- Start a hobby, a business, or give back through volunteering?
- Downsize and take things a little slower?
Your answers to these questions will create the foundation for the next questions in planning your retirement.
Can I Retire at 60 in Australia?
Short answer? Yes, you can.
But whether you should, or if it’s the right time for you, comes down to a few personal and financial factors.
There’s no official retirement age in Australia, so you’re free to step away from work whenever it suits you. That said, the Age Pension doesn’t begin until 67, which means retiring earlier requires a solid plan for how you’ll fund those in-between years.
According to the Australian Bureau of Statistics (ABS), of the 130,000 people who retired in 2022, the average retirement age was around 65. For men, it was approximately 67, and for women, it was around 63.
This means you will be in the fortunate minority retiring at 60, but you are definitely not alone. More and more people, who are switched on and planning ahead are asking: Can I retire at 60 in Australia? And the answer again is yes you can, but it’s important to ask a few grounding questions to make sure it’s the right move for your circumstances:
- Have you worked out how much you’ll need each month to maintain your lifestyle?
- Are your superannuation, savings, and investments set up to last through a potentially 25–30-year retirement?
- More importantly, what will your days look like once you stop working?
Retirement isn’t just about stepping away from a job, it’s about moving towards a new way of living. And when you’ve planned around both your finances and your lifestyle, retiring at 60 becomes far more than just possible, it becomes exciting!
How Much Do I Need to Retire at 60 In Australia?
This is one of the most common questions people ask when thinking about stepping away from work and it makes complete sense. When considering retirement at 60, the focus often turns to that “magic number”, the amount you need tucked away to live comfortably without worrying about running out.
The chart below from the ABS shows the main sources of income for retirees, broken down by gender and comparing data from 2020–21 to 2022–23. According to this data, superannuation and the Age Pension remain the two most common income sources.
But here’s something important to keep in mind, you won’t be eligible for the Age Pension until age 67. So, if you’re retiring at 60, your superannuation will likely be your primary income source in those first 7 years. That’s why making sure your super is well-structured and aligned with your lifestyle needs is one of the smartest moves you can make for a financially secure retirement.
To start with, it’s always smart to look at the ASFA benchmarks. They provide a helpful baseline for what a comfortable or modest retirement might look like for those aged 65-84. While these numbers don’t directly reflect retirement at 60, and the amount of income you want for retirement, might be quite different, they still offer a starting point for your planning.
Comfortable lifestyle
- Couples: Annual income of around $78,998 – requires a super balance of $730,000
- Singles: Annual income of around $56,166 – requires a super balance of $630,000
Modest lifestyle
- Couples: Annual income of around $52,690 – requires a super balance of $385,000
- Singles: Annual income of around $36,548 – requires a super balance of $340,000
- Couples: Annual income of around $69,376 – requires a super balance of $385,000(when renting privately)
- Singles: Annual income of around $51,418 – requires a super balance of $340,000 (when renting privately)
* Note: Figures based on June Q 2026 and the estimated lump sums provided by ASFA are based on the assumption that retirees will receive the Age Pension, both at the time of retirement and throughout their retirement years.
If you’re planning to retire at 60 instead of 67, you’ll likely need a higher balance than these figures, since your super will need to stretch over a longer period. These numbers are a helpful guide, but the right figure really comes down to you, your lifestyle goals, what kind of retirement you see yourself enjoying.
When Can You Withdraw Super?
The next key question is when can you actually withdraw your super when retiring at 60?
Your ability to withdraw super depends on your preservation age and meeting specific conditions of release. Your preservation age is the minimum age at which you can access your super, provided you’ve met a condition of release. For those born after 1 July 1964, the preservation age is 60. This means that if you’re retiring at 60, you’ve reached the age where accessing your super becomes possible.
Conditions of Release at Age 60
At 60, you can access your super if you meet one of the following conditions:
- Retirement: You’ve ceased gainful employment with no intention of returning to work.
- Ceasing an Employment Arrangement: You’ve ended an employment arrangement after turning 60, even if you plan to work again elsewhere.
- Transition to Retirement (TTR): You’re still working but wish to access part of your super through a TTR strategy.
It’s important to note that even if you declare permanent retirement, you can return to work later. However, any new super contributions will be preserved until you meet another condition of release or turn 65.
Options for Accessing Super at 60
Once eligible, you have several options for accessing your super:
- Lump Sum Withdrawal: You can take out a portion or all of your super as a lump sum.
- Retirement Income Stream: Convert your super into a regular income stream, providing consistent payments to support your lifestyle.
- Transition to Retirement (TTR) Strategy: If you’re not fully retiring, a TTR allows you to access a portion of your super while continuing to work part-time, helping to supplement your income.
So, while there are several options and flexibility if you’re planning to retire at 60, it’s important to carefully review the super withdrawal rules and available strategies to determine what best suits your personal circumstances.
When Can I Access My Super Tax Free?
One of the key advantages of retiring at 60 in Australia is that once you’re over the age of 60 and retired, your super withdrawals are tax-free.
This applies to both:
- Lump sum withdrawals, and
- Ongoing income payments from a retirement income stream, like an account-based pension.
So, if you’ve fully retired, you can usually access your super without worrying about paying extra tax on the money you’ve already worked hard to save.
However, if you’re still working or using a Transition to Retirement (TTR) strategy, the tax rules can be a little more complex. While pension payments from a TTR income stream are tax-free if you’re over 60, investment earnings on the money within your TTR pension are still taxed at up to 15%, just like they are in a regular super accumulation account.
Once you fully retire or turn 65, your TTR pension automatically converts to an account-based pension, and from that point on, both your income payments and investment earnings become tax-free.
By reviewing your super withdrawal strategy early, you’ll be in a better position to maximise your income, minimise tax, and enjoy the lifestyle you’ve worked hard to build.
Don’t Just Retire at 60, Retire on Your Terms
Retiring at 60 is more than just reaching an age, it’s about stepping into a new phase of life with purpose, clarity, and confidence. And while it’s entirely possible, the key to doing it well lies in planning for your unique lifestyle, financial needs, and long-term goals.
That’s why taking a tailored approach rather than following a generic path can make all the difference in helping your money last and your lifestyle thrive.
Whether it’s figuring out how much you’ll need, when to access your super, or how to make your income last, getting the right advice can make all the difference. If retiring at 60 is something you’re seriously considering, reach out to Yield Advisors and explore how our retirement specialists can help you create a plan that makes it possible.
