What Does an Account-Based Pension Calculator Estimate?
An account-based pension calculator estimates how much super you withdraw each year, the minimum payment required and how long your pension balance may last. It starts with retirement-phase super savings, rather than forecasting contributions during working life. The model shows annual withdrawals, remaining super and potential depletion under stated assumptions.
How Do You Calculate Account-Based Pension Income?
Enter the age at which you expect to start an account-based pension, your retirement-phase starting balance and the annual withdrawal you want to model. The calculator applies the greater of your target and the standard minimum for each full year, limited by the balance available. It projects monthly investment returns and deductions, then displays annual results.
- Check the balance available to start an account-based pension, taking account of your personal transfer balance cap.
- Enter the pension commencement age and the annual amount you plan to withdraw.
- Review the assumed net return, administration fees and inflation.
- Compare the first-year withdrawal, annual minimum and projected depletion age.
- Change one input at a time to compare outcomes.
How Do Fees and Investment Returns Affect Your Pension?
A higher realised return leaves more capital available for later withdrawals. Account fees reduce the balance each month. Enter a return after investment fees and earnings tax; avoid entering the same investment fee again as a separate account fee. A constant annual rate is a calculation assumption, not a market forecast.
What Is the Minimum Account-Based Pension Withdrawal?
Standard Australian account-based pensions have minimum annual payments based on age and pension account balance. For a full financial year, the statutory minimum generally uses the pension account balance at 1 July and the member's age at that date. The tool rounds the calculated minimum to the nearest A$10. The usual factors are:
| Age | Minimum annual factor |
|---|---|
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95 or older | 14% |
For an A$400,000 pension balance at age 67, the standard minimum is A$20,000 for a complete financial year. These factors do not establish an affordable or recommended spending level. Source: Australian Taxation Office, Payments from super, accessed October 2026.
How Does a Part-Year Pension Affect the Minimum Payment?
For a pension commencing part-way through a financial year, the first-year minimum generally uses the applicable proportion of days remaining, subject to the prescribed rounding and exceptions. A standard account-based pension that commences on or after 1 June generally has no minimum payment required for that financial year. This calculator models complete financial years only. It does not calculate a reduced first-year minimum for pensions starting after 1 July or the generally nil minimum for pensions commencing on or after 1 June. Confirm actual minimum payments with your fund. Source: Australian Taxation Office, Income stream (pension) rules and payments, accessed October 2026.
Can You Withdraw More Than the Pension Minimum?
YES, a standard account-based pension generally permits withdrawals above its required minimum, subject to available funds and product rules. Higher payments reduce the super balance remaining for subsequent years. The calculator reports a compulsory amount above your desired withdrawal separately because the excess is not assumed to be spent or reinvested.
How Long Will Your Account-Based Pension Last?
The lifespan of an account-based pension depends on the starting balance, investment earnings, withdrawals and fees. The calculator reports the first modelled year when the pension balance reaches zero, or indicates that funds remain at the selected final age. This is not a longevity guarantee.
As a simple no-return, no-fee illustration, A$300,000 divided by A$20,000 per year lasts 15 years. At A$30,000 per year, the same balance lasts 10 years. Standard minimum withdrawals and inflation-indexed targets make real projections more complex.
How Does Inflation Affect Retirement Income?
Inflation lowers the purchasing power of a fixed dollar payment. The calculator raises your desired nominal annual withdrawal by the inflation assumption and shows the projected closing balance in starting-year dollars. At 2.5% assumed inflation, A$40,000 received 20 years later is worth approximately A$24,411 in starting-year purchasing power, using A$40,000 ÷ 1.025²⁰.
How Do Account-Based Pensions Differ From the Age Pension?
An account-based pension is an income stream funded from your own superannuation savings. The government Age Pension is a separate payment assessed by Services Australia, based on age, residence, income and assets tests. This calculator does not estimate Age Pension entitlement or include Age Pension payments. Source: Services Australia, Who can get Age Pension, accessed October 2026.
How Does the Transfer Balance Cap Affect Your Pension?
The transfer balance cap limits how much an individual can transfer into the tax-free retirement phase of super. The general transfer balance cap for 2026–27 is A$2.1 million, but a person's own cap can differ depending on previous retirement-phase transfers and indexation. It is not a cap on total super savings. This calculator does not determine personal cap space or test the pension starting balance against it. Source: Australian Taxation Office, Transfer balance cap, 2026–27.
What Does a Worked Pension Calculation Show?
With A$400,000 opening capital, an illustrative 5% annual return, A$1,000 of annual fees and an A$24,000 year-end withdrawal, the closing balance is A$395,000. The withdrawal corresponds to A$2,000 per month as a payment equivalent, but this example assumes the full payment occurs at year end.
| Annual arithmetic example | Amount |
|---|---|
| Opening super | A$400,000 |
| 5% earnings | +A$20,000 |
| Fees | −A$1,000 |
| Withdrawals | −A$24,000 |
| Closing super | A$395,000 |
The on-page calculator applies monthly earnings, fees and payments. It therefore produces a different closing balance from a year-end example using the same headline percentages.
How Is a Pension Calculator Different From a Super Projection Tool?
A pension calculator estimates retirement-phase withdrawals and remaining capital, while the Super Projection Calculator Australia estimates savings accumulated before retirement. For employer contributions and salary sacrifice, use the Super Contributions Calculator Australia. To calculate compulsory super on wages, use the Superannuation Calculator Australia.
How Accurate Are Account-Based Pension Projections?
Account-based pension projections are conditional mathematical estimates, not promises. The model assumes a constant annual rate converted to monthly returns, monthly withdrawals, full-year minimum factors, fixed nominal flat fees and an inflation-indexed withdrawal target. It excludes variable market returns, commencing-year pro-rating, personalised tax, government Age Pension eligibility, product-specific restrictions and transfer balance cap assessments.
Compare your starting super amount with a recent fund statement, verify the selected fee and return assumptions and repeat the calculation with lower earnings or higher expenses. ASIC Moneysmart's Account-based pension calculator offers a separate reference model, although assumptions and payment timing must match for meaningful comparison.
Does an account-based pension guarantee income?
NO, standard market-linked account-based pensions do not guarantee a fixed income for life. Withdrawals, investment outcomes, fees and the amount remaining in your super account determine payment sustainability.
Can an account-based pension run out?
YES, withdrawals and fees can exhaust an account-based pension balance. The estimate shows the first modelled year when that happens under your selected assumptions.
Can investment returns be negative during retirement?
YES, investment returns can be negative in retirement. Early losses can cause lasting damage if withdrawals continue while the balance is depressed. This tool does not model changing annual return sequences.
Can you change your pension withdrawal amount?
YES, standard account-based pensions generally allow withdrawal amounts above the minimum to be changed, subject to product rules and fund processing requirements. The calculator lets you change the assumed annual withdrawal and recalculate.
Is the Age Pension automatically included?
NO, government Age Pension income is excluded from this account-based pension calculator. Entitlement depends on Services Australia's residence, income and assets rules.
Do pension minimum withdrawals increase with age?
YES, the minimum payment percentages step up at specified age bands rather than on every birthday. The required dollar withdrawal also depends on the relevant account balance.
Sources
- Australian Taxation Office, Key superannuation rates and thresholds: Payments from super and Income stream (pension) rules and payments, accessed 13 October 2026.
- Australian Taxation Office, Transfer balance cap, 2026–27.
- ASIC Moneysmart, Account-based pension calculator, accessed October 2026.
- Services Australia, Age Pension, last updated 21 November 2025; Income test for Age Pension and Assets test for Age Pension, last updated 20 September 2026.