Retirement at 60 can be an exciting prospect — but one of the biggest questions people ask is, “Will I have enough money to make it work?”
There is no single superannuation balance that guarantees a comfortable retirement.
The amount you need depends on the lifestyle you want, where you live, your housing situation, your health and family circumstances, your other assets and income, and how long your money may need to last.
For people living in the Coffs Harbour region, retirement planning can also look quite different from the assumptions used in national retirement calculators.
With our region having an older population profile than the Australian average1, retirement is an increasingly important financial consideration for local individuals and families.
At CarePlan Advisory Services, we believe the most important question isn’t simply “How much super do I need?”
It is:
“How much do I need to fund the retirement I want?”
Retirement at 60: What happens before Age Pension age?
One of the most important things to understand when considering retirement at 60 is that accessing your super and receiving the Age Pension are two different things.
Generally, you can access your super from age 60 if you have retired or meet another relevant condition of release.2 The Age Pension, however, is currently available from age 673, subject to meeting the eligibility requirements and the income and assets tests.
This creates a potential seven-year planning period between age 60 and 67.
If you retire at 60, how will you fund your lifestyle during those years?
Your income may come from a combination of:
- Superannuation
- An account-based pension
- Personal investments
- Cash and savings
- Part-time employment
- Other income sources
- Government benefits you may be eligible for
The strategy you choose for these years can have a significant impact on how long your super lasts and what your retirement looks like later.
How much is enough?
The Association of Superannuation Funds of Australia (ASFA) Retirement Standard provides useful benchmarks for retirement spending.
For December 2025, ASFA estimated that a single person needs around $630,000 in super at age 67 for a comfortable retirement, while a couple needs around $730,000, assuming home ownership and that the Age Pension forms part of their retirement income.4
For a modest retirement, the estimated superannuation requirement is considerably lower.
These figures are useful as a guide, but they should not be treated as a personal retirement target.
Your retirement might look very different from someone else’s.
A person who plans to travel regularly, renovate their home, help their children financially or enjoy an active lifestyle may need considerably more income than someone who intends to live a quieter retirement close to home.
Start with your spending
One of the best ways to understand your retirement needs is to look at what you actually spend.
Rather than guessing, review your bank and credit card statements and consider your spending over several years.
Separate your expenses into:
Essential spending
Housing, utilities, food, insurance, healthcare and other regular commitments.
Lifestyle spending
Travel, dining out, hobbies, entertainment, gifts and other things that make retirement enjoyable.
One-off or irregular spending
Cars, home renovations, major travel, helping family or unexpected expenses.
This gives you a much more realistic starting point for determining the income you may need in retirement.
What we see locally
At CarePlan Advisory Services, we see that retirement is rarely about simply reaching a particular super balance. For people in the Coffs Harbour area, retirement is often about having the freedom to enjoy the lifestyle they have worked hard for – whether that means staying in the family home, travelling, spending more time with children and grandchildren, enjoying the coast and local community, or simply having the financial security to make choices without constantly worrying about money.
Talk to Chelsea at CarePlan Advisory Services today. 1800 270 990We also see that people can underestimate the importance of the years immediately before and after retirement. Decisions around when to stop work, how much to contribute to super, how to structure investments, how much income to draw and how to manage the period before Age Pension age can all work together. Our role is to help clients understand those decisions as part of one overall strategy, rather than looking at each decision in isolation.
Can I boost my super before retirement?
If you’re still working, there may be opportunities to increase your retirement savings before you stop work.
Depending on your circumstances, this could include:
- Salary sacrifice contributions
- Personal deductible contributions
- Making after-tax contributions
- Using available contribution caps
- Making use of the bring-forward arrangements where eligible
- Contributing some of an inheritance or other lump sum
- Redirecting surplus cash flow into super
The current concessional contribution cap is $32,500 per financial year, with some people able to contribute more if they are eligible to use unused concessional cap amounts from previous years.5
The non-concessional contribution cap is currently $130,000 per year, with eligible people potentially able to use the bring-forward arrangements to contribute more5
There are important eligibility rules and limits that apply, including rules relating to your total super balance.
The Australian Taxation Office provides the current contribution caps and eligibility requirements, so these should always be checked before making contributions.
Don’t forget your home
For many people approaching retirement, the family home is one of their largest assets.
Whether you intend to stay in your home, downsize, renovate or eventually move into aged care, your housing decision can have a significant impact on your retirement strategy.
For example, downsizing may release capital, but it can also affect your future cash flow, Centrelink position and lifestyle.
There isn’t necessarily a “right” answer.
The important thing is understanding the financial and personal consequences before making a decision.
What happens to my super when I reach 67?
Reaching Age Pension age doesn’t automatically mean you need to stop using your super.
Your super can continue to form part of your retirement income strategy.
Depending on your circumstances, you may receive:
- A full Age Pension
- A part Age Pension
- No Age Pension
Your eligibility is assessed under the Government’s income and assets tests.
This is why retirement planning should consider not only how much super you have today, but how your super and other assets may change over time.
A well-structured retirement strategy can help you understand how your income may evolve from age 60 through to Age Pension age and beyond.
What about tax?
Tax is another important consideration when deciding how and when to use your super.
For many people aged 60 and over, superannuation benefits can be received tax-free depending on the circumstances and the type of benefit being paid.6
However, the tax treatment of super can be complex, particularly where different components of super, employment income, investments or other strategies are involved.
The Australian Taxation Office provides detailed information about the tax treatment of superannuation, and professional advice can help you understand how the rules apply to your individual circumstances.
Don’t overlook estate planning
Retirement planning isn’t just about making your money last during your lifetime.
It is also about considering what happens to your wealth if you die.
Superannuation is generally not automatically dealt with through your Will in the same way as personally owned assets.
Your super fund will generally need direction about who you want your superannuation death benefit paid to, and the type of beneficiary nomination you make can be important.
Depending on your circumstances, you may have the option of making a binding or non-binding death benefit nomination.
These arrangements can be complex, and they should be reviewed regularly alongside your broader estate planning.
Retirement planning is more than a super balance
The question “How much super do I need to retire at 60?” doesn’t have a universal answer.
The better approach is to work backwards from the life you want.
Consider:
- What will my retirement cost?
- How much income will I need?
- How will I fund the years from 60 to 67?
- When might I become eligible for the Age Pension?
- How much can I afford to draw from super?
- How should my investments be structured?
- What happens if markets fall?
- What if I live longer than expected?
- How do my plans affect my partner or family?
- What happens to my assets when I die?
These are the questions that turn a superannuation balance into a retirement plan.
Planning your retirement with CarePlan Advisory Services
At CarePlan Advisory Services, we help people approaching retirement and those already retired gain clarity, direction and confidence about their financial future.
We take the time to understand what matters to you, your lifestyle goals and your financial circumstances.
From there, we can help you understand your options and develop a personalised strategy for your retirement — including how to use your super, manage your investments, plan for Age Pension eligibility and create an income that supports the lifestyle you want.
Because retirement isn’t just about having enough money.
It’s about having a plan for how your money can support the life you want to live.
Ready to start planning?
If you’re approaching retirement or already retired and would like to understand whether your current financial position can support the retirement you want, talk to Chelsea at CarePlan Advisory Services today. 1800 270 990
Local advice. Personalised planning. Greater clarity about your future.
Sources
1. Australian Bureau of Statistics (ABS). 2021 Coffs Harbour, Census All persons QuickStats — Coffs Harbour demographic data.
2. Australian Taxation Office (ATO). Conditions of release | Australian Taxation Office – contribution rules
3. Services Australia. Who can get Age Pension – Age Pension – Services Australia – Age Pension eligibility, income test and assets test.
4. ASFA Retirement Standard. https://www.superannuation.asn.au/consumers/retirement-standard/ – retirement income and superannuation benchmarks.
5. Australian Taxation Office (ATO). https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/contributions-caps#ato-Nonconcessionalcontributionscap – current super contribution caps.
6. Australian Taxation Office (ATO). Accessing your super to retire | Australian Taxation Office – tax treatment