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Account-Based Pension Calculator
An account-based pension converts a super balance into an income stream. The balance is not guaranteed to last — the drawdown rate decides that, and the minimum is only a floor.
ATO minimum drawdown by age · Inflation-indexed option
At a glance
Interactive calculator
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Your pension account
An account-based pension pays a minimum each year, set as a percentage of your balance.
How long it lasts
—at this drawdown
—
What governs how long it lasts
The minimum is a floor, not a plan
At 66 the minimum is 5% of the balance. On $650,000 that is $32,500 a year, which is well below most people’s spending. Drawing only the minimum grows the balance in real terms if returns exceed 5%.
Returns after fees decide the rest
A 6% return with 0.5% fees is 5.5% net. If you draw 7%, you are eroding capital by 1.5% a year regardless of the balance size.
Indexing the drawdown matters
A fixed $45,000 a year loses purchasing power every year. Indexing at 2.5% maintains lifestyle but cuts the duration meaningfully — usually by four to six years.
$650,000 at 66, drawing $45,000
The legal minimum at 66 is 5%, or $32,500. Drawing $45,000 against a 6% return after 0.5% fees, the balance lasts 30 years, to about age 96, and you draw $1,350,000 in total.
The balance path is what matters: $545,880 at 75, $353,050 at 85, $23,670 at 95. Nothing looks wrong for two decades. The last five years are where the plan either holds or does not, and it is decided by the drawdown rate you set at the start.
Account-based pension questions
What is the minimum drawdown at my age?
Under 65: 4%. 65–74: 5%. 75–79: 6%. 80–84: 7%. 85–89: 9%. 90–94: 11%. 95 and over: 14%. The percentage is applied to your balance on 1 July each year.
Is the income from an account-based pension taxable?
If you are 60 or over, no — payments from a taxed source are tax-free and do not need to be declared. Between preservation age and 60, the taxable component is taxed at your marginal rate with a 15% offset.
What happens to the balance when I die?
It passes to your nominated beneficiaries or estate, and is not automatically covered by your Will. A binding death benefit nomination ensures it goes where you intend; a non-binding nomination only guides the trustee.
Can I take a lump sum from the pension?
Yes, at any time, in full or in part. The commuted amount is added back to your transfer balance cap room if it comes from the pension phase.
Does the pension count for the Age Pension assets test?
Yes. The account balance is an assessable asset and the income you draw is assessed under the income test — though under deeming rules rather than the actual payment amount.
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Turn these numbers into a decision
A calculator gives you a range. An adviser gives you a decision — pressure-tested against your super, your tax position and the life you actually want to fund.
General advice only · No obligation · No product push
Assumes a constant net return and a constant or inflation-indexed drawdown. It does not model sequencing risk, which can shorten the duration materially if early returns are poor. Minimum drawdown percentages are current ATO rates. General information only.
Reviewed November 2026 · FY2026–27 rates and thresholds