- 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 (from 1 July 2023), pass the income test and assets test, and have lived in Australia for at least 10 years. The full single rate is approximately $1,096/fortnight (2024). 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 — if you want 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.