If you’re planning to retire at 60-67, you’ve got two choices: retire on autopilot like most people and risk running out of money, paying too much tax, and missing opportunities.

Or retire strategically, and make the most of every chance to maximise your retirement.

Let’s break down what you need to know if you’re planning to retire between 60 and 67.

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7 key considerations for retiring between ages 60 and 67

Retiring in your early sixties isn’t just about picking a date — it’s about making informed choices that can shape your financial security for decades. Here are seven essential factors to weigh up before you take the plunge.

1. Superannuation access from age 60

Turning 60 is a major financial milestone. It’s when, for many Australians, superannuation first becomes available to help fund retirement as you’ve reached your preservation age. This is significant if you’re planning to retire between 60 and 67.

To access your super in full, though, you’ll still need to meet one of the following conditions of release. This includes:

• Ceasing employment – If you leave a job after turning 60, you can access the super accumulated up to that point (even if you intend on working another job).
• Retiring permanently – If you declare you’ve permanently retired, with no intention to return to work on a full- or part-time basis (i.e., 10 hours or more per week), you can access your full super.
• Turning 65 – Once you turn 65, you have full access to your super, even if you’re still working.

Importantly, accessing your super doesn’t mean you’re locked out of the workforce forever. You can return to work after accessing your super.

For example, you could leave a job after 60 and start a new position straight away, or retire permanently and then return to work if you genuinely change your mind. If you want to learn more, see our article on Returning to Work After Retirement

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Another way you can also access your super once reaching 60 is via a transition to retirement (TTR) pension and we’ll talk about that more, later in the article.

2. Super withdrawal options and tax implications

Once you’re eligible to access your super, you’ll need to consider how to withdraw it based on your own circumstances. Each withdrawal option comes with its own benefits, rules, and tax implications.

Option 1: Income stream (account-based pension)

An account-based pension allows you to draw a regular income from your super while the balance remains invested.

Key features of an account-based pension:

• Tax-free income – If you’re aged 60 or over, regular payments from your account-based pension are tax-free.
• Tax–free investment earnings – If you’re 60 or over and retired, or have reached age 65, earnings from investments within your account-based pension balance are tax-free. If your account-based pension is in the transition to retirement phase, investment earnings are taxed at up to 15% until you retire or turn 65.
• Minimum drawdowns apply – Each financial year, you must withdraw a minimum set percentage of your super balance.

An account-based pension suits those who seek regular income, but what if you need a lump sum to cover major costs?

Option 2: Lump sum withdrawal

Instead of an income stream, you may be able to withdraw some or all of your super in one or more ‘lump sum’ withdrawals.

Key features of lump sum withdrawals:

• Tax-free lump sum withdrawals from 60 – Generally, lump sum withdrawals from age 60 are tax-free, unless your super balance includes an untaxed component.
• Investment earnings outside super may be taxed – If you reinvest funds withdrawn from super in your personal name, any returns (like interest, dividends, or capital gains) will be taxed at your marginal rate, which can be up to 45%.

We’ve covered the two main ways to draw down your super, but you don’t have to choose just one.

Many people including most of our clients use a combination.

For example, you might set up an account-based pension for regular income, and make lump sum withdrawals when needed, for travel, renovations, debt, or helping the kids.

There’s also the alternative of keeping super, right where it is, in your accumulation account.

Some people do this for strategic reasons — maybe they plan to return to work, or don’t necessarily need a regular income. It can also help couples maximising Centrelink payments.

The downside? Investment earnings in accumulation are taxed up to 15%, compared to tax-free in a pension.

Wondering about the taxes you’ll face in retirement? Read Taxes in Retirement: 7 Types & Smart Strategies to Reduce Them to learn more.

3. Still working? Consider a transition to retirement (TTR) Pension

Between ages 60 and 64, a key consideration is the ability to access part of your super while still working through a transition to retirement (TTR) pension.

Many people start a TTR pension because they’re not ready to fully give up work just yet.

A TTR pension lets you draw 4–10% of your balance each year as regular payments, often to supplement income after reducing work hours so you can maintain your lifestyle and replace lost earnings.

Additionally, you can combine a TTR pension with salary sacrificing into super to reduce your tax and grow your super — often called a TTR strategy.

In this setup, you ask your employer to direct some of your pre-tax salary into your super (up to your concessional contributions cap). These salary sacrifice contributions are taxed at 15% when they enter your super fund — which is usually lower than your marginal tax rate.

Meanwhile, you draw income from your TTR pension to supplement your take-home pay. And the best part? If you’re 60 or over, TTR pension payments are tax-free.

However, it’s important to note that investment earnings on your TTR pension balance will continue to be taxed at 15%, just like in the accumulation phase. Your TTR pension only moves into the retirement phase (and earns tax-free investment returns) once you meet the superannuation definition of retirement or turn 65.

Want to understand a transition to retirement (TTR) pension in more detail? Read our article Transition to Retirement Pension: How It Works & Why You Should Start One

4. Age pension considerations

If you’re planning to retire between the age of 60 to 67, there are a few things to keep in mind about the Age Pension. Before we get into the considerations, here’s a quick refresher on the basics:

• Age Pension age – Currently set at 67. You can apply up to 13 weeks before reaching this age.
• Means-tested eligibility – To qualify, you’ll need to meet both an income and assets test. Centrelink assesses your total income (including wages, deemed investment/superannuation income, and any pension payments from overseas) and the value of your assets (such as your car, investments and superannuation balance).
• Payment amount – The full Age Pension provides a basic regular income if you meet all eligibility criteria. For those with lower super balances, it may be the sole source of income in retirement. But if your income or assets are above the lower thresholds (and below the maximum limits), you’ll be eligible for a part Age Pension.

If you’re relying partly or fully on the Age Pension, retiring between 60 and 67 means you’ll need to think about two key things.

Firstly, you need to plan for the gap before eligibility, funding this period from your super or other savings.

Secondly, while the Age Pension isn’t available until age 67, the choices you make between ages 60 and 67 can influence your financial situation and Centrelink entitlements down the track.

Here’s how it works: under 67, super in accumulation is exempt from Centrelink’s income and asset tests. But, if you start a super income stream, like an account based pension before age 67, that balance is counted.

So if for example, your partner receives Centrelink payments, keeping super in accumulation may protect those entitlements since it’s not assessed until you move it into an account based pension (pension phase) or withdraw it.

Another strategy is moving super from the older spouse to the younger. This can reduce assessable assets, but you need to understand the risks and tax implications first.

Professional advice is strongly recommended to avoid the potential pitfalls.

5. How much superannuation do you need to retire at 60-67?

Retiring in your early 60s means your super may need to last around 30 years, maybe even longer.

Have you thought about whether your savings could realistically last three decades?

So how much is enough?

The reality is: there’s no single, straightforward answer.

Your ideal super balance depends on personal factors, like whether you’ll receive the Age Pension, the age you plan to retire, and the lifestyle you’re planning for. But using industry benchmarks can help give you a starting point.

According to the Association of Superannuation Funds of Australia (ASFA), the amount of savings required for a comfortable retirement at age 67 is:

• $595,000 for a single person, and
• $690,000 for a couple.

These figures assume that the retiree/s are homeowners, have drawn down all their capital, and receive a part Age Pension.

If you retire earlier, say at 60, you’ll need a larger super balance to support yourself for longer.

Using the same AFSA benchmarks, as a rough estimate, retiring at 60 typically requires:

• $890,000 for a single person, and
• $1.1 million for a couple.

Where does your balance sit compared to these numbers — above, below, or right on track?

6. Modelling your unique retirement situation

The figures shared above are intended as a general guide based on average industry assumptions. You may need more or less, depending on your personal circumstances and the specific age you decide to retire.

To get a clearer picture of how much super you’ll need to retire, it’s important to model your own situation using retirement projections.

So, what exactly are retirement projections?

They are long-term forecasts that estimate how your financial situation could play out over time, based on where you’re at now and your goals for retirement.

Retirement projections typically factor in:

• your current super balance, savings, and investments
• income sources (like the Age Pension, rental income, or part-time work)
• your desired lifestyle and estimated retirement expenses
• one-off lump sum expenses, such as travel or medical costs
• life expectancy, including longevity trends and health factors
• investment return estimates
• inflation and future cost-of-living increases.

To model your situation, free online tools like MoneySmart’s Retirement Planner are a great place to start. Simply enter your key personal and financial details, then adjust the settings to reflect your situation.

These retirement projections typically show:

• how your retirement savings balance may change over time
• how much you may be able to spend each year (in today’s dollars); and
• the age your savings could run out.

When you picture your retirement, have you actually run the numbers to see if your money could last that long?

Online tools are a good starting point. But at Toro Wealth, we use more advanced modelling tailored to each client’s circumstances.

Wealth, we use more advanced modelling tailored to your individual circumstances.

For more details on the key factors that influence your retirement needs, read our in-depth article on How Much Super Do You Need to Retire Comfortably In Australia?.

7. Contributing to super after retiring

Even after you’ve retired, you might still choose to contribute to your super. This might happen if you sell assets, downsize your home, or receive an inheritance.

Contributions are allowed until age 75. And if you’re 60 to 67, there’s no work test for personal deductible contributions.

That means you can still grow your super, even if you’re retired or working very little and enjoy some tax savings too.

You may also qualify for a downsizer contribution. This lets you transfer up to $300,000 per person from the sale of your home into super and it doesn’t count towards your contribution caps.

To be eligible for the downsizer contribution, you must:

• be 55 or over
• sell a home owned for at least 10 years
• make your contribution within 90 days of receiving the sale proceeds.

Other important considerations before retiring

Beyond your super, age pension, and retirement modelling, there are a few other important areas to review as you prepare for retirement between 60-67.

Reviewing your investment strategy

In the lead-up to retirement, it may be wise to gradually rebalance your portfolio and reduce your exposure to market volatility. But that doesn’t mean going completely conservative. You’ll still want to maximise growth where possible, to help your savings last throughout retirement.

The key is finding the right mix of growth and defensive assets that suits your current stage of life and financial circumstances.

Managing debts

Paying off credit cards, personal loans, or reducing your mortgage can improve your cash flow and take a significant weight off your shoulders once you stop working.

Estate planning and beneficiary nominations

Your will doesn’t automatically cover your super, so having a valid death benefit nomination (DBN) is important. Ensure your will and death benefit nominations (DBNs) are up to date so that your super gets distributed as you intend, quickly and tax-efficiently.

Health care planning

The Commonwealth Seniors Health Card (CSHC) isn’t available until age 67, which means you may face higher healthcare costs in the meantime. It’s a good idea to review your private health insurance cover and budget for unexpected medical expenses.

Gifting and asset transfers

Be cautious when gifting or transferring assets — they may still count towards Centrelink’s income and asset tests. Understanding these rules is important, as such transfers could still affect your Age Pension entitlements.

Emotional preparation

Retirement is a major life event. Like many new experiences, it can feel both exciting and a little nerve-wracking. But ultimately, it should be a time of fulfilment, enjoyment, and everything you’ve worked for. To help you make the most of it, think about how you’ll maintain purpose, structure, and social connection in this new chapter.

Your path to retiring at 60 to 67

Retiring at 60 to 67 is achievable with the right planning and informed decisions.

A successful retirement comes from aligning your tax strategy, super choices, Centrelink planning, and the lifestyle you want to create. Take charge by modelling your unique situation and developing a strategy tailored to your retirement goals.

For personalised guidance and support, consider working with a retirement financial adviser. That’s exactly where our team can help.

At Toro Wealth, we help Australians in their 50s to 70s optimise their financial position in the lead up to retirement. Learn more about our services and cost.

FAQs on retiring at 60 to 67 in Australia

Let’s look at some of the most common questions we receive about retiring at 60 to 67 in Australia.

How much super do you need to retire at 60?

The amount of super you need to retire at 60 depends on your personal circumstances — there’s no single, set number.

Key factors include:

• the lifestyle you want to maintain in retirement
• the age you plan to retire
• the number of years your retirement savings may need to last
• whether you own your home
• your eligibility for the Age Pension.

Generally, retiring at 60 requires a larger super balance, as you’ll need to be drawing on your savings for longer.

Can I retire at 60 and still work?

Yes — you can retire at 60 and continue working.

As for accessing your super:

• If you leave a job after turning 60, you can access the super accumulated up to that point and then take up another job later.
• If you permanently retire after age 60, you’re allowed to return to work under limited circumstances (i.e. less than 10 hours per week) without breaching the rules.
• If you permanently retire from age 60 and later change your mind, you can return to work (i.e. 10 hours or more per week) so long as your intention to permanently retire was genuine.

Note: Any new super contributions made in your new job will be preserved (or ‘locked away’). You’ll need to meet another condition of release (such as leaving that role or turning 65) before you can access them.

Can I retire at 60 in Australia with $500K?

You may be able to retire at 60 with $500,000 in Australia, but it largely depends on your lifestyle and spending habits.

For context, a single person retiring at 60 aiming for a comfortable lifestyle (i.e. an income of $51,630 per year) would need approximately $890,000 in super savings. For a modest lifestyle, this number drops to around $290,000.

A comfortable lifestyle in retirement typically includes health insurance, owning a reasonable car, regular leisure activities, and occasionally eating out. In contrast, a modest lifestyle focuses on covering basic needs, with fewer discretionary expenses.

If you’re seeking a more comfortable lifestyle, $500,000 in retirement savings may not suffice.

Can I retire at 60 in Australia with $1 million?

You may be able to retire at 60 with $1 million in Australia, depending on your lifestyle and personal circumstances.

Typically, retirees who own their home and live a relatively modest lifestyle may find $1 million sufficient, with careful planning and budgeting.

Couples often share costs like groceries, utilities and housing, which helps reduce individual living expenses. Singles, on the other hand, cover these costs alone. This means singles often need a higher super balance to support themselves in retirement.

Another important consideration is inflation. Over time, inflation reduces the value of your super balance. And because retiring at 60 means funding a longer retirement, your money needs to stretch further to support you over at least the next 20 to 30 years.

While $1 million may provide a comfortable retirement for some people, others may find it limits their lifestyle. Retirement modelling can help you assess whether this amount is feasible for your situation.

If I retire at 60, can I access my super?

Yes — if you retire at 60, you can access your super, but how much you can withdraw depends on your situation:

• If you permanently retire after reaching your preservation age (which for most people is now 60), you can access your entire super balance.
• If you leave a job, you can access the super you’ve accumulated up to that point — even if you plan to work again.

If I retire at 60, can I claim benefits?

If you retire at 60, you may be eligible for certain government benefits and concessions, even though the Age Pension isn’t available until 67.

For example, you can apply for a Seniors Card, which usually provides discounts on public transport, shopping, and some professional services. Many private businesses, such as telecom providers and insurance brands, also offer discounts or special rates to Senior Card holders.

Eligibility requirements for the Seniors Card vary by state or territory, but generally you need to be aged 60 or over and working less than a specified number of hours per week.

Depending on your situation, you may also be eligible for other state-based concessions or Commonwealth support payments.

Sources:

• https://moneysmart.gov.au/how-super-works/getting-your-super
• https://www.servicesaustralia.gov.au/assets-test-for-age-pension