Super Retirement Income Calculator Australia — How Much Income Will Your Super Generate?
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
Contents
This calculator estimates the annual income your super balance could generate in retirement — and how long it might last — based on your balance, drawdown rate, and investment return assumption.
Results are projections based on constant assumptions. Actual outcomes depend on variable investment returns, inflation, fees, taxes, and Age Pension entitlements — which are not included in this calculator.
Super Retirement Income Calculator
Understanding the Results
Sustainable drawdown: This is the maximum annual amount you can draw from your super balance for the target number of years, assuming the investment return you entered. It uses the same formula as an annuity — drawing this amount leaves the balance at approximately zero at the end of the target period.
Total annual income: Your super drawdown plus any Age Pension income. For many retirees, the Age Pension increases as super depletes over time — enter your estimated entitlement at age 67 for a more realistic picture.
ASFA benchmarks:
- Comfortable retirement: ~$52,000/year single, ~$73,000/year couple
- Modest retirement: ~$33,000/year single, ~$48,000/year couple
Most retirees with moderate super balances will fall between these two standards — especially once the Age Pension is included.
Minimum Drawdown Requirement
The ATO requires account-based pension holders to draw a minimum percentage each year:
| Age | Minimum Drawdown Rate |
|---|---|
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95+ | 14% |
If your sustainable drawdown is below the minimum for your age, you must draw at least the minimum — which will deplete the balance faster than the calculator shows.
For a full breakdown, see Minimum Drawdown Rates — The Full ATO Table.
What If My Income Is Below What I Need?
If the calculator shows insufficient income, consider:
- Boosting contributions in the years before retirement — see Super Calculator
- Checking Age Pension eligibility — most Australians qualify for at least a part Age Pension
- Reducing target spending or distinguishing essential vs discretionary spending
- Considering a later retirement age — each extra working year adds contributions and reduces the drawdown period
- Working part-time in early retirement, supplementing super with earned income
How Long Will Different Balances Last?
A common concern is outliving your super. This table shows how long different balances last at various drawdown levels, assuming 6% annual return on pension phase assets (0% earnings tax):
| Starting balance | $30,000/year drawdown | $40,000/year drawdown | $52,000/year drawdown |
|---|---|---|---|
| $300,000 | ~15 years | ~10 years | ~7 years |
| $500,000 | 30+ years | ~21 years | ~14 years |
| $700,000 | 30+ years | 30+ years | ~22 years |
| $900,000 | 30+ years | 30+ years | 30+ years |
Assumes constant 6% annual return, no Age Pension supplement, no fees deducted. For more realistic modelling, enter your balance in the calculator above and include Age Pension income where applicable.
Key insight: at $500,000 drawing $40,000/year at 6% return, your super lasts approximately 21 years — taking a 67-year-old retiree to age 88. The Age Pension then becomes the primary income source as super depletes, providing an income floor for the remainder of life.
How the Age Pension Interacts With Super Drawdown
Many Australians treat the Age Pension as a “bonus” — but for typical super balances, it is a planned and significant component of retirement income. Here’s how it works:
- The Age Pension assets test counts your super balance in pension phase at full market value
- As your super balance decreases through drawdown, assets test pressure reduces and Age Pension entitlement increases
- This creates a natural self-correcting mechanism: drawing more from super accelerates its depletion, which then increases the Age Pension — partially cushioning the income loss
Example: A single retiree starts at 67 with $400,000 in an account-based pension drawing $32,000/year:
- At 67: limited Age Pension entitlement (balance too high for full pension)
- At 75: balance ~$300,000, part-Age Pension kicks in ~$10,000/year
- At 80: balance ~$200,000, higher Age Pension entitlement ~$20,000/year
- At 85: balance near exhausted, full Age Pension (~$29,000/year) becomes primary income
Modelling this interaction properly requires running through the assets test at each year — this calculator provides a simplified income estimate only. For a full Centrelink modelling exercise, use the Services Australia online estimator or seek advice from a licensed financial planner.
See Super and the Age Pension for the full income and assets test details.
Frequently Asked Questions
What is a “sustainable drawdown”? A sustainable drawdown is the maximum annual amount you can withdraw from a given balance over a set number of years — leaving the balance at approximately zero at the end of the period. It uses the same mathematics as a loan repayment (annuity formula). Drawing at this rate and achieving the assumed return means your money lasts exactly the target period.
What happens if I draw less than the minimum? From age 65, account-based pension holders must draw at least the mandated minimum percentage each year. You cannot leave money in pension phase indefinitely without withdrawing. If the sustainable amount is below the minimum, the calculator’s projection underestimates how quickly your balance will deplete. See Minimum Drawdown Rates.
Should I draw the minimum or the sustainable amount? In early retirement years, drawing the minimum preserves capital and gives your balance more time to grow. In later years, as the minimum percentage increases with age, it may actually exceed the sustainable amount — accelerating depletion. Many retirees draw the minimum in their 60s and reassess in their 70s. See Super Drawdown Strategies.
Does the Age Pension count as income for tax purposes? The Age Pension itself is taxable income but rarely generates a tax liability for retirees — because account-based pension payments from a taxed super fund are tax-free from age 60, and the Age Pension is low enough to fall within the senior Australians tax offset (SAPTO) effectively exempting it.
What investment return should I use for pension phase? In pension phase, earnings are taxed at 0% (for balances under the Transfer Balance Cap). A 5–6% assumption for a balanced option is typical for modelling purposes. Risk tolerance matters more in retirement — a large market drawdown in the first few years of retirement has an outsized impact on longevity. See Sequencing Risk.
Is the income from this calculator before or after tax? Super pension income is tax-free from age 60, so for most retirees using this calculator, the income shown is effectively after-tax take-home income. Income from other sources (dividends, rental income, part-time work) would be taxed separately.
For advice on structuring your retirement income, speak with a licensed financial adviser through MoneySmart. Related: Account-Based Pension Explained, How Much Super to Retire, Minimum Drawdown Rates, Make Your Super Last.