12/08/2026
Should I cash out my super at 60 to buy a home?
A lot of people think the answer is “yes.”
It rarely is…
I recently met Margaret*
She’s worked hard her entire life and built up $750,000 in super
But she’s approaching 60 with no home and no other major assets
Her big question:
“Should I cash out my super so I can finally buy a house and retire?”
Let’s run the numbers
Path 1: Cash out super → buy a home → “retire”
Yes, she’d avoid paying rent (lets say $500 per week).
But she’d also:
> Lose her entire retirement nest egg
> Lose all future investment earnings
> Lose flexibility to cover health, travel or emergencies
> Have to fund property maintenance and related expenses
> End up relying almost entirely on the Age Pension
A single retiree on the full Age Pension
Currently receives about $1,180pf = $30,680pa
That’s it
No buffer, no extras, no freedom
A roof over your head…
But a very limited lifestyle
Path 2: Keep super invested → continue renting
Let’s look at the numbers:
> $750,000 earning a modest 6%pa = ~$45,000pa
> She’d still receive a part Age Pension = ~$17,000pa
> She’d get rent assistance = ~$5,500pa
> She keeps access to lump sums when she needs them
Yes, she will need to pay $26,000pa in rent
But she gains something far more valuable:
✔ Flexibility
✔ Ability to manage rising costs
✔ Access to funds for health, travel, emergencies
✔ A retirement with choices
It’s not “owning nothing.”
It’s owning options
Margaret came in convinced that buying a home was her only path
After walking through the numbers… she changed direction entirely
What I want for every client is simple:
Not the “dream scenario,”
But the scenario that gives them
Freedom, flexibility, and dignity in retirement
If you want to understand the real trade-offs in your own situation,
DM me to get started
