How to use the account-based pension calculator
- 1 Enter your account balance at 1 July.
- 2 Enter your age at 1 July.
- 3 Enter the yearly withdrawal you plan, or 0 to take only the minimum.
- 4 Enter an average return after fees and read the results.
Worked example
A $500,000 account-based pension at age 67, earning 6% a year. The minimum is 5%, so $25,000 this year (about $962 a fortnight). Taking only the minimum each year, there would still be about $404,000 at age 90. Drawing $40,000 a year instead, the money would last about 22 years, to age 89.
Drawing a super pension
- Take at least the minimum by 30 June each year.
- Plan a steady withdrawal you can sustain.
- Combine with the Age Pension if eligible.
- Review the investment option as you age.
Add the Age Pension with the Age Pension Calculator, check large balances with the Division 296 Calculator, and compare cash with the Term Deposit Calculator.
Features
Minimum drawdown
4%, 5%, 6%, 7%, 9%, 11% or 14% by age, rounded to the nearest $10.
Longevity
Projects the balance year by year to show how long it lasts.
Tax-free
Payments from age 60 are tax-free.
When to use it
Starting retirement
See what income your super gives. Add the Age Pension with the Age Pension Calculator.
Choosing a withdrawal
Test higher withdrawals and see when money runs out.
Large balances
Check the new tax on balances over $3 million with the Division 296 Calculator.
Building super first
Grow your balance with the Super Balance Calculator.
Related Pay and Super tasks
Frequently asked questions
What is the minimum pension drawdown?
The minimum percentage of your balance on 1 July that you must withdraw each year: 4% under 65, 5% from 65 to 74, 6% from 75 to 79, 7% from 80 to 84, 9% from 85 to 89, 11% from 90 to 94 and 14% from 95.
Is there a maximum withdrawal?
No, for an account-based pension. Transition to retirement pensions are limited to 10% a year.
Are account-based pension payments taxed?
No, from age 60. Earnings in the pension account are also tax-free, up to the transfer balance cap.
What is the transfer balance cap?
The limit on how much super you can move into tax-free retirement phase, $2 million from 1 July 2025.
What if I start part-way through the year?
The minimum is pro-rated for the days left in the financial year. If you start in June, there may be no minimum that year.
Does an account-based pension affect the Age Pension?
Yes. The balance is counted in the assets test and deemed for the income test.
Can I take lump sums?
Yes. You can usually take extra lump sums at any time, which reduce the balance.
What return should I use?
A long-term average after fees, often 5% to 7% for balanced options, but returns vary year to year.
Is this financial advice?
No. It is an estimate. Consider speaking to a licensed adviser.
Can I have more than one account-based pension?
Yes. You can hold pensions with different funds, but the minimum applies to each one and the transfer balance cap applies to the total.
What happens to my pension when I die?
It can continue to a nominated reversionary beneficiary, usually a spouse, or be paid as a lump sum to your beneficiaries or estate.
Can I stop or pause my account-based pension?
You can commute it back to accumulation or roll it over, but while it runs you must take at least the minimum each year. If you miss the minimum, the pension can lose its tax-free status for that year.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
· Last updated
· How we check our tools
· Report a problem