# Retirement income calculator

Source: https://calculatax.com/super/retirement-income-calculator/
Title: Retirement Income Calculator: How Long Will Super Last?
Last updated: 2026-11-07

This retirement income calculator gives an estimate, not advice, of how long super lasts on your yearly budget, in today's dollars. A $45,000 budget from $650,000 at 67 lasts until about **age 86** at a 6% return and 2.5% inflation. For a benchmark budget, see [ASFA's Retirement Standard](https://www.superannuation.asn.au/consumers/retirement-standard/).

| Default example: $650,000 at 67, single homeowner, 6% return, 2.5% inflation | Result |
|---|---|
| Paid from super in year one | $45,000 (6.92% of the balance) |
| Full yearly payments | 19 (ages 67 to 85) |
| Balance left at the start of age 86, in today's dollars | $13,706 |
| Total paid out in today's dollars, including the $13,706 left at 86 | $868,706 |
| Age Pension | Not included in this result |

*Projection only, in today's dollars. Your budget rises with 2.5% inflation and is drawn at the start of each year. Returns of 6% a year after fees. Age Pension excluded.*

> **This shows what your assumptions lead to. It doesn't tell you what to do.** Real returns move around, and the rules can change. Use the result as a starting point for your own checks.

Retirement income from [superannuation](https://calculatax.com/super/) can come from an account-based pension. You keep the balance invested and draw an income from it each year, at or above a legal minimum. If you're still building your balance, the [super calculator](https://calculatax.com/super/super-calculator/) projects it forward to retirement.

| Yearly budget, in today's dollars | Balance runs out at about age (6% return, 2.5% inflation) |
|---|---|
| $35,000 | 95 |
| $40,000 | 89 |
| $45,000 | 86 |
| $50,000 | 83 |
| $55,000 | 81 |
| $60,000 | 80 |

*$650,000 at 67. Returns of 6% after fees, budget drawn at the start of each year. Age Pension excluded. Calculatax calculation.*

The return assumption moves the answer too. These two run-out ages use the same $45,000 budget.

- **84**: Run-out age at a 5% return
- **88**: Run-out age at a 7% return

### The default example, year by year

Your budget stays at $45,000 in today's dollars. With 2.5% inflation, that's $70,185 of actual spending at 85. The balance earns 6% a year after fees. It falls slowly at first and then quickly, because there's less left to earn returns.

| Age | Balance at the start of the year, in today's dollars ($45,000 budget, 6% return) |
|---|---|
| 67 | $650,000 |
| 70 | $574,454 |
| 75 | $430,336 |
| 80 | $259,875 |
| 85 | $58,254 |
| 86 | $13,706 |

*Projection before that year's withdrawal. Age Pension excluded. Calculatax calculation.*

Between 67 and 75 the balance drops by about $219,664. Between 75 and 85 it drops by $372,083.

**Where the money goes**

| Step | Working | Amount |
|---|---|---|
| 19 full yearly payments | Ages 67 to 85 | $855,000 |
| Last part payment | At 86 | +$13,706 |
| **Paid out in total** |  | **$868,706** |

Returns above inflation fund about $218,706 of that. The other $650,000 is the starting balance.

> **Flat spending lasts longer and buys less.** If the $45,000 stays flat instead of rising with inflation, the same balance pays 29 full years and lasts to about 96. By 85, though, a flat $45,000 buys what about $28,852 buys today.

The calculator raises spending each year by default, so the result reflects a steady standard of living. Spending in retirement is rarely a straight line, though. To test a change in spending, run the calculator once for the early years and again for the later balance.

## Minimum drawdown rates by age

An account-based pension must pay at least a minimum percentage of the balance each year. The percentage rises with age, so the minimum dollar amount can grow even as the balance falls.

| Age on 1 July | Minimum annual payment, % of balance |
|---|---|
| Under 65 | 4% |
| 65 to 74 | 5% |
| 75 to 79 | 6% |
| 80 to 84 | 7% |
| 85 to 89 | 9% |
| 90 to 94 | 11% |
| 95 or more | 14% |

*Account-based pension minimum annual payments, 2026-27. The ATO calls these factors indicative, because pro-rating and rounding rules also apply. Source: [ATO payments from super](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/payments-from-super).*

The minimum is a floor. At 67 it's 5%, or $32,500 on $650,000. If the minimum is more than the spending you've entered, the calculator pays the minimum, because the money has to leave the pension account.

The general transfer balance cap of $2.1 million limits how much super you can move into retirement phase pensions in 2026-27.

## Your yearly retirement budget

Enter what you expect to spend in a year, in today's dollars. For a benchmark, [ASFA's Retirement Standard](https://www.superannuation.asn.au/consumers/retirement-standard/) publishes modest and comfortable budgets. It's an industry body's estimate that changes each quarter, so we link to it and don't repeat its figures. Your own costs for housing, travel, health and family will differ from any standard.

## Where the age pension fills the gap

The Age Pension starts at 67 and is means tested. Services Australia says there are no plans to change the age. Your super counts in both tests: the balance is an asset under the assets test, and a deemed income is applied to it under the income test.

- **$1,237.70**: Maximum a fortnight, single (Including supplements)
- **$1,866.00**: Maximum a fortnight, couple combined (Including supplements)

Those are the rates on [how much Age Pension you can get](https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?context=22526) from 20 September 2026. The [assets test for Age Pension](https://www.servicesaustralia.gov.au/assets-test-for-age-pension?context=22526) sets these limits.

| Assets test limit | Single | Couple, combined |
|---|---|---|
| Homeowner, full pension up to | $333,000 | $499,000 |
| Homeowner, part pension stops at | $745,750 | $1,121,000 |
| Non-homeowner, full pension up to | $600,000 | $766,000 |
| Non-homeowner, part pension stops at | $1,012,750 | $1,388,000 |

*Full pension limits from 1 July 2026. Part pension limits from 20 September 2026. Figures confirmed 6 November 2026. Source: Services Australia.*

Financial assets such as super are deemed to earn 1.75% on the first $66,800 for a single, and 3.75% above that. For a pensioner couple, the lower rate covers the first $110,600. These [deeming provisions](https://operational.servicesaustralia.gov.au/public/Pages/income-assests-and-rates-of-payment/108-05050000-05.html) apply from 20 September 2026 to 19 March 2027, so they're due for review after that.

> **Turning the Age Pension on changes the answer a lot.** On the default example, the estimate moves from about age 86 to past age 100. That assumes the pension rises with inflation, so it stays flat in today's dollars. If it didn't, the money would last to about age 97. The pension starts at about $7,454 a year, because the assets test cuts it, and it grows as the balance falls.

### How the calculator works out the pension

It works out a fortnightly rate under each test, on your balance at the start of the year, and uses the lower one. It assumes super is your only asset and only income. By default the pension, its limits and the deeming thresholds all rise with inflation. An advanced option turns that off.

The income test takes off 50 cents for each dollar of income over the free area of $226 a fortnight. For a couple it's 25 cents each over $396 combined. The cut-off points are $2,701.40 and $4,128.00.

The assets test takes off $3 a fortnight for each $1,000 over the full pension limit. We worked that rate out from the published limits, because the pages we checked don't quote it. At $650,000, a single homeowner gets $286.70 a fortnight under the assets test and $907.64 under the income test, so $286.70 applies.

## Planning for a long life

A balance that lasts to 86 may run out before you do. ABS life tables for 2022-2024 give a 67-year-old man 18.5 more years on average, to 85.5, and a woman 21.0 more years, to 88. Those are averages, so many people live longer.

Lump sums bring the run-out age forward. Taking $50,000 at 67 for a car or renovation leaves $600,000. At the same $45,000 of spending, the money then runs out at about 84 instead of 86.

To see how your balance compares before you retire, look at [super balance by age](https://calculatax.com/super/super-balance-by-age/).

## What the estimate leaves out

The calculator holds the return steady in every year, which real markets never do. It doesn't include tax on income streams, fees charged as flat dollar amounts, or insurance.

The default result excludes the Age Pension. It also ignores lump sum withdrawals, home downsizing, inheritances and aged care costs.

### Using it as a couple

Couples need both balances and both ages, and the pension rules for couples differ from singles. As a rough guide, a couple can enter their combined balance and combined spending, using the younger partner's age. The money may need to last for the longer of the two lives, and each partner's account still has its own minimum payment.

This page can't tell you what to do with your super. A licensed financial adviser can look at your own situation.

- [Super calculator](https://calculatax.com/super/super-calculator/): projects the balance you could have at 67.
- [Super balance by age](https://calculatax.com/super/super-balance-by-age/): how balances compare across age groups.

## Retirement income questions: how long super lasts, budgets and market falls

### How long will my super last?

It depends on your balance, spending and returns. With $650,000 at 67, a $45,000 budget in today's dollars and a 6% return, super lasts until about 86. Spending $40,000 stretches it to about 89. The Age Pension, which this example excludes, would extend it further on the calculator's assumptions.

### What is a comfortable retirement income in Australia?

It depends on your housing, health and lifestyle. [ASFA's Retirement Standard](https://www.superannuation.asn.au/consumers/retirement-standard/) publishes current modest and comfortable budgets, which you can enter here as your yearly budget. The page shows how long your balance lasts on that budget.

### How is a superannuation pension calculated?

An account-based pension pays what you choose, as long as it meets the minimum percentage for your age. The minimum is a percentage of your balance on 1 July. At 67 it's 5%, or $32,500 on $650,000. A $45,000 income is 6.92% of the balance in the first year.

### What happens if markets fall early in retirement?

An early fall shortens the life of your super more than a later one. In the default example, a 20% loss in the first year means 13 full years of payments instead of 19. The same fall in the tenth year leaves 16 full years. Money paid out during a fall isn't there to share in any recovery.

*Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.*

## Sources

- [Services Australia: How much Age Pension you can get](https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?context=22526)
- [Services Australia: Assets test for Age Pension](https://www.servicesaustralia.gov.au/assets-test-for-age-pension?context=22526)
- [Services Australia: Deeming provisions](https://operational.servicesaustralia.gov.au/public/Pages/income-assests-and-rates-of-payment/108-05050000-05.html)
- [ATO: Payments from super (minimum annual payments)](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/payments-from-super)