Using a Retirement Drawdown Calculator in Australia: A Step-by-Step Guide
Estimates how long retirement savings last with a fixed yearly withdrawal. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Retirement Drawdown Calculator.
Why it matters
Superannuation is Australia’s compulsory retirement savings system. Employers pay the super guarantee into your fund, contributions are taxed concessionally, and the money is generally preserved until you reach preservation age and retire. Small changes to contributions, fees or investment returns compound over decades.
What you need to enter
The calculator asks for 3 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Starting balance ($) | 500000 |
| Annual withdrawal ($) | 40000 |
| Return (% per year) | 5 |
The formula
Each year the balance earns the return, then the withdrawal is taken out, until the money runs out.
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Money lasts approx. | 21 years |
| Year-one withdrawal rate | 8% |
The headline figure is 21 years (money lasts approx.). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the money lasts approx. changes with starting balance
The table below keeps every other input at the example value and moves only “Starting balance ($)” up and down by 10% and 20%. It shows how sensitive the money lasts approx. is to that one figure.
| Starting balance ($) | Money lasts approx. |
|---|---|
| 400,000 | 15 years |
| 450,000 | 17 years |
| 500,000 | 21 years |
| 550,000 | 24 years |
| 600,000 | 29 years |
At 400,000 the result is 15 years; at 600,000 it is 29 years. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Account-based pensions have a minimum yearly drawdown, so check your planned withdrawal meets it.
Keep going
Before relying on the number, read Common Retirement Drawdown Mistakes (and a Better Way). You might also find these guides useful:
- FIRE Number Calculator Explained for Australians
- How the Super Fees Comparison Calculator Works (With a Worked Example)
- Pension Minimum Drawdown Calculator: Formula, Example and What the Result Means
Frequently asked questions
- Are the projections guaranteed?
- No. Investment returns vary from year to year. Treat projections as a guide for planning, not a forecast.
- What is the super guarantee rate?
- It is 12% of ordinary time earnings from 1 July 2025.
- Should I get advice?
- For decisions like salary sacrifice, contribution strategies or retirement income, a licensed financial adviser can look at your full situation. This site provides general information only.
Run your own numbers in the Retirement Drawdown Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.