Australia Account-Based Pension Calculator: Drawdown Income
Work out the monthly income an Australian account-based pension can provide — the income stream you draw from your superannuation once you retire — by spreading your balance over a chosen number of years while it keeps earning.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly income | Total drawn | Growth while drawing |
|---|---|---|---|
| $800k · 5% · 25yr | $4,676.72 | $1,403,016.10 | $603,016.10 |
| $500k · 5% · 30yr | $2,684.11 | $966,278.92 | $466,278.92 |
| $1.2M · 6% · 25yr | $7,731.62 | $2,319,485.05 | $1,119,485.05 |
| $350k · 4% · 20yr | $2,120.93 | $509,023.48 | $159,023.48 |
How This Calculator Works
Enter your super balance at retirement, the return you expect, and how many years you want the income to last. The calculator finds the level monthly income that runs the balance down to zero over that period. An account-based pension (also called an allocated pension) is the main way Australians turn super into retirement income — you choose how much to draw, above a legislated minimum.
The Formula
Fixed-Period Drawdown
PV = savings pot, r = monthly rate (annual ÷ 12), n = number of monthly payments
Worked Example
An $800,000 balance earning 5% and drawn over 25 years provides about $4,677 a month. An account-based pension is created by moving your accumulated super into 'retirement phase' (or 'pension phase') once you meet a condition of release. The balance stays invested and keeps earning, while you draw a regular income from it. You must withdraw at least a legislated minimum each year (a percentage that increases with age — for example 4% in your 60s, rising in later decades), but there's no fixed maximum, so you control the pace.
Key Insight
The account-based pension is the cornerstone of how Australians fund retirement from super, and several features shape the real income. It's flexible, not a guaranteed annuity: your balance stays invested (you choose the investment mix), keeps earning, and you draw a regular income — but you bear the investment and longevity risk, since the money lasts only as long as the balance does. This calculator answers 'what level income exhausts the balance over N years', which is one way to plan, but the law works differently on the floor: you must draw at least a minimum percentage of the balance each year, and that minimum rises with age (broadly 4% under 65, stepping up through your 70s, 80s and beyond), recalculated annually on the balance — so actual minimum withdrawals are a percentage of a changing balance rather than a fixed dollar amount. The standout tax advantage this calculator doesn't model: for those aged 60 and over, both the investment earnings inside an account-based pension and the income payments are generally tax-free, making pension phase far more tax-efficient than the accumulation phase (which is taxed at 15% on earnings). There's a transfer balance cap limiting how much super you can move into the tax-free retirement phase, with excess kept in accumulation or outside super. The income also interacts with the Age Pension means tests, so drawing more (or holding more) can affect any government pension entitlement. Many retirees combine an account-based pension with the Age Pension and sometimes an annuity for guaranteed baseline income. This calculator gives a level monthly income that depletes the balance over your chosen horizon at a steady return; for a real plan, apply the age-based minimum drawdown percentages, account for the tax-free status if you're 60+, and consider the Age Pension interaction and sequencing risk.
Frequently Asked Questions
How is account-based pension income calculated?
This calculator finds the level monthly income that draws your balance to zero over your chosen period, while it keeps earning. An $800,000 balance at 5% over 25 years gives about $4,677 a month. In practice you must also draw at least a legislated minimum percentage each year, which rises with age.
What is an account-based pension?
The main way Australians turn superannuation into retirement income. You move your super into 'retirement phase', keep it invested so it keeps earning, and draw a regular income. It's flexible — you choose the drawdown above a minimum — but you bear the investment and longevity risk, unlike a guaranteed annuity.
Is there a minimum I must withdraw?
Yes — a legislated minimum percentage of the balance each year, which increases with age (broadly 4% under 65, rising through your 70s and beyond). It's recalculated annually on your balance. There's no fixed maximum, so you can draw more, but you must take at least the minimum.
Is account-based pension income taxed?
For those aged 60 and over, both the investment earnings inside the pension and the income payments are generally tax-free — a major advantage over the accumulation phase, where earnings are taxed at 15%. This calculator shows gross income; for over-60s that's effectively also the after-tax figure.
Does it affect my Age Pension?
It can. An account-based pension's balance and income interact with the Age Pension means tests, so how much you hold and draw may change any government pension entitlement. There's also a transfer balance cap limiting how much super you can move into the tax-free retirement phase. Many retirees combine both.
Related Calculators
Methodology & Review
The monthly income is the level amount that draws the super balance to zero over the chosen period, with the balance earning a steady return, compounded monthly. It does not apply the legislated minimum drawdown percentages (which rise with age), the Age Pension interaction, or the tax-free status of most pension-phase income for over-60s.
Written by Ugo Candido · Last updated May 22, 2026.