Pension Minimum Drawdown: What to Check Before You Trust the Number

Updated 9 July 2026 · Super and retirement

A Pension Minimum Drawdown Calculator gives a fast answer, but the answer is only as good as what goes in. These are the mistakes we see most often with pension minimum drawdown calculations in Australia, and how to avoid them.

1. Going over the contribution caps

Excess concessional contributions are taxed at your marginal rate, and the cap includes your employer’s contributions.

2. Not checking your employer pays super

Check your fund statements or myGov to confirm contributions arrive. Unpaid super can be reported to the ATO.

3. Leaving multiple accounts open

Each account charges fees and may carry insurance premiums. Consolidating through myGov is usually quick.

4. Ignoring fees

A fee difference of 1% a year looks tiny but can reduce a balance by six figures over a working life.

5. Overlooking the detail that matters most here

Missing the minimum can cause the pension to lose its tax-free status for that year.

How the minimum annual payment changes with account balance

A common mistake is getting one input slightly wrong. Here is what happens to the minimum annual payment when “Account balance ($)” is off by up to 20% in either direction, with everything else held steady.

Account balance ($)	Minimum annual payment
320,000	$16,000.00
360,000	$18,000.00
400,000	$20,000.00
440,000	$22,000.00
480,000	$24,000.00

At 320,000 the result is $16,000.00; at 480,000 it is $24,000.00. 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 quick sense check

Minimum = balance on 1 July × age-based rate (4% under 65, 5% at 65–74, 6% at 75–79, 7% at 80–84, 9% at 85–89, 11% at 90–94, 14% at 95+). With typical inputs the calculator returns minimum annual payment of $20,000.00. If your own result looks wildly different, check that each figure is in the right unit and period (weekly, monthly or yearly) before drawing conclusions.