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AussieCalc

Retirement Income Calculator

Model how long your super and savings will last as drawdown income, including any Age Pension supplement and investment returns on the remaining balance.

When to use

When you want to check if your retirement savings will last your full retirement, or when the Age Pension might supplement your income.

Who it's for

Australians within 10–15 years of retirement, or already retired, modelling how long their drawdown income will last.

What you'll need

Total retirement savings, desired annual income, current age, and expected investment return on the remaining balance.

$

Your total super and savings at the point of retirement.

$

Your total desired income each year in retirement. ASFA comfortable standard is roughly $52k–$55k (single) and $73k–$78k (couple) — verify current figures at asfa.asn.au.

The age your funds need to last to. Average life expectancy in Australia: ~85 (men) and ~87 (women).

Estimates only. Assumes constant returns, income, and no account for inflation, fund fees, or tax on earnings. Not financial advice, consider consulting a licensed financial adviser.

Saved scenarios

No saved scenarios yet. Adjust inputs and click “Save current” to compare later.

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Retirement income sustainability

23-year retirement (age 67–90) — how much is funded

Funded (age 67–85)
17.5 yrs
Gap (age 85–90)
5.5 yrs

Savings deplete at age 85. Consider increasing contributions, reducing income, or delaying retirement to close the 5.5-year gap.

Retirement balance over time

How your balance depletes — with and without $18,000/yr additional income

With $18,000/yr incomeWithout additional income
Line chart showing retirement savings balance declining over time
PeriodWith $18,000/yr incomeWithout additional income
Age 67$500K$500K
Age 69$465K$428K
Age 71$426K$347K
Age 73$381K$256K
Age 75$332K$154K
Age 77$276K$39K
Age 79$213K$0
Age 81$143K$0
Age 83$64K$0
Age 85$0$0
Age 87$0$0
Age 89$0$0
Age 90$0$0

Additional income of $18,000/year reduces portfolio drawdown from $65,000 to $47,000, significantly extending sustainability.

Retirement income in Australia

How retirement income drawdown works

When you retire, your super moves from accumulation phase into retirement phase. You draw an income from your savings while the remaining balance continues to earn investment returns. The key question is whether your returns outpace your withdrawals. If your portfolio earns more than you draw each year, your balance may last indefinitely. If you draw more than you earn, your balance shrinks over time. A 4% annual drawdown is a widely cited starting point for a 25–30 year retirement, though actual sustainability depends on your returns, life expectancy, and whether you receive a partial Age Pension.

The Age Pension and how it helps

Australia's Age Pension provides a safety net for retirees whose super and savings run low. The full Age Pension is approximately $30,000/year for singles and $45,000/year for couples (indexed by CPI twice yearly, verify current rates at servicesaustralia.gov.au). It is means-tested: the more assets and income you have, the less Age Pension you receive. Many Australians receive a partial pension that tops up their super income. Including even a partial Age Pension in your income plan can dramatically extend how long your portfolio lasts, reducing the annual drawdown from your savings and allowing more time for investment returns to compound.

ASFA comfortable retirement standard

The Association of Superannuation Funds of Australia (ASFA) benchmarks a 'comfortable' retirement lifestyle at approximately $52,000–$55,000/year for a single person and $73,000–$78,000/year for a couple (updated quarterly, verify at asfa.asn.au for the latest figures). A comfortable standard includes private health cover, regular leisure activities, a reasonable car, and the ability to travel domestically. A 'modest' lifestyle — covering basics with limited extras — is estimated at around $33,000 (single) and $48,000 (couple). These figures assume home ownership. Renters typically need significantly more to cover housing costs throughout retirement.

Sequencing risk and investment strategy

One of the biggest risks in retirement is sequencing risk — the danger of experiencing poor investment returns early in retirement when your balance is at its highest. A 20% market fall in year one of retirement is far more damaging than the same fall in year fifteen, because you're drawing income throughout and a depleted early balance has less time to recover. Many retirees use a 'bucket strategy': keeping 1–2 years of income in cash, 3–7 years in defensive assets, and the remainder in growth assets. This buffers against needing to sell growth assets during a downturn.

Worked examples

$450,000 super — how Age Pension transforms the outcome
David retires at 67 with $450,000 in super and needs $48,000 per year to live comfortably. At 6% annual return with no additional income, the calculator projects the balance depleting around age 81, roughly 9 years short of a 90-year life expectancy. Adding a partial Age Pension supplement of $12,000 per year reduces his required super drawdown to $36,000 annually. The calculator now projects his balance lasting past age 90. The same $450,000, topped up by a modest pension, turns a significant shortfall into a fully funded retirement.
$750,000 balance — a comfortably funded retirement
Sandra retires at 65 with $750,000 and targets $55,000 per year, broadly in line with ASFA's comfortable living standard for a single Australian. At 6% annual return, her balance generates $45,000 per year in investment income, leaving only $10,000 of real depletion per year. The calculator projects her balance lasting until around age 94, well beyond a 90-year planning horizon. A larger balance reduces depletion speed because returns offset most of the drawdown, giving compounding more room to work.
Early retirement at 60 — impact on balance sustainability
Chris retires early at 60 with $600,000 and draws $50,000 per year. At 6% annual return, the calculator projects the balance depleting around age 82, 8 years short of a 90-year life expectancy. Retiring at 67 with the same balance and drawdown extends the depletion age to around 89, still a little short but far better. Retiring early doesn't change the rate of depletion; it adds more years of drawdown to cover. To sustain a 90-year horizon from age 60 on $600,000, a lower annual draw or additional income such as the Age Pension would be needed.

Frequently asked questions

How long will my super last in retirement?
How long your super lasts depends on your balance, how much you draw each year, and the investment returns you earn on the remaining balance. As a rough guide: a $500,000 balance drawing $30,000/year at 6% return would last approximately 30+ years, while drawing $50,000/year from the same balance depletes it in around 14–15 years. The Age Pension significantly extends sustainability for most retirees. This calculator models year-by-year depletion so you can see exactly when (or if) your savings are projected to run out.
What is the safest withdrawal rate in retirement?
The '4% rule' (originally from US research), suggests withdrawing 4% of your portfolio in the first year and adjusting for inflation each year after. It is a useful benchmark for a 25–30 year retirement, not a guarantee. A higher rate may still be sustainable if you have a shorter time horizon or receive a partial Age Pension to supplement withdrawals. The key is to model multiple scenarios and revisit annually; drawdown is rarely a set-and-forget calculation.
Does the Age Pension affect my retirement planning?
Yes, the Age Pension is a significant resource for Australian retirees. Even a partial pension can reduce how much you need to draw from your super each year, dramatically extending its life. The pension is available to Australian residents who are age 67 or older, pass the income test and assets test, and have lived in Australia for at least 10 years. The full single rate is approximately $1,160/fortnight (indexed by CPI each March and September, verify current rates at servicesaustralia.gov.au). Use the 'Additional annual income' field in this calculator to model the impact of a partial or full pension.
What's the difference between a transition to retirement and account-based pension?
A Transition to Retirement (TTR) pension allows you to access super after reaching preservation age (60) while still working, useful for reducing hours gradually. You can draw between 4% and 10% of your balance each year. An Account-Based Pension (ABP) is a standard retirement income stream for those who have permanently retired or turned 65. ABPs have no upper drawdown limit (but a minimum of 4–6% depending on age) and earnings in the fund are tax-free in retirement phase. This calculator models an ABP-style drawdown.
What happens if my super runs out?
If your superannuation and savings run out before you reach the end of your life expectancy, you would need to rely on the Age Pension as your primary income. The full Age Pension provides a basic but liveable income for most retirees. Other options include downsizing the family home (releasing equity), the Pension Loans Scheme (reverse mortgage on property), or returning to part-time work. Centrelink's financial information service (FIS) provides free guidance on income options in retirement.
How does inflation affect retirement income planning?
Inflation erodes the purchasing power of your income over time. A $65,000 income today may feel the same as $45,000 in 20 years at 2% inflation. This calculator uses nominal returns and does not model inflation explicitly. To account for inflation, reduce your assumed investment return by the expected inflation rate (e.g., use 4% instead of 6% for a 2% inflation-adjusted return). The ASFA comfortable retirement figures are updated annually to reflect CPI changes, so future income targets will likely be higher in dollar terms.
What is the minimum drawdown rate for a superannuation income stream?
Account-based pensions have legislated minimum annual drawdown rates based on your age: under 65: 4%; 65–74: 5%; 75–79: 6%; 80–84: 7%; 85–89: 9%; 90–94: 11%; 95 and over: 14%. The minimum is calculated on your balance as at 1 July each year (or the starting balance for a pension that commences during the year). There is no maximum drawdown limit for an account-based pension. The temporary COVID-19 reductions to 50% of minimums applied through to 30 June 2023 and have since reverted to standard rates. Failing to meet the minimum in any financial year may affect the tax-free status of earnings within the fund.

How this calculator works

Enter your starting retirement balance, your target annual income, your expected investment return on the remaining balance, and any additional income sources such as the Age Pension or part-time work. The calculator projects your balance year by year: each year, the portfolio earns the return you specified, and the net drawdown (income target minus additional income) is deducted. When the balance reaches zero, that is your estimated fund depletion year.

The key relationship to understand is whether your annual return rate exceeds your drawdown rate. If your portfolio earns 6% per year and you draw 4%, the gap keeps your balance growing indefinitely. If you draw 8% and earn 6%, the balance shrinks by 2% per year and will eventually run out. A 4% drawdown rate (of the starting balance) is a widely cited starting point for a 25–30 year retirement, though individual circumstances vary significantly.

All figures are in nominal terms, inflation is not deducted from the income target or the return. To maintain the same real purchasing power over 20 years at 3% inflation, your target income in nominal dollars needs to be roughly 80% higher by retirement year 20. Use the inflation toggle if available, or run the Inflation Calculator alongside this one to adjust your income target for real-world purchasing power.

Methodology

  • Assumptions: Drawdown begins immediately; constant annual investment return; additional income (Age Pension, part-time work) is fixed and not inflation-adjusted; drawdown taken at the end of each year.
  • Calculation: Balance = balance × (1 + return rate) − net annual drawdown; depletion year estimated by linear interpolation when the balance falls below one year's net drawdown.
  • Limitations: Does not model Age Pension means-testing changes, inflation-adjusted income targets, Centrelink assets and income tests, or large one-off expenditures.

Sources

Last updated: June 2026

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