Common Retirement Drawdown Mistakes (and a Better Way)

Updated 6 July 2026 · Super and retirement

A Retirement 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 retirement drawdown calculations in Australia, and how to avoid them.

1. Not checking your employer pays super

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

2. Leaving multiple accounts open

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

3. Ignoring fees

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

4. Going over the contribution caps

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

5. Overlooking the detail that matters most here

Account-based pensions have a minimum yearly drawdown, so check your planned withdrawal meets it.

How the money lasts approx. changes with annual withdrawal

A common mistake is getting one input slightly wrong. Here is what happens to the money lasts approx. when “Annual withdrawal ($)” is off by up to 20% in either direction, with everything else held steady.

Annual withdrawal ($)	Money lasts approx.
32,000	32 years
36,000	25 years
40,000	21 years
44,000	18 years
48,000	16 years

At 32,000 the result is 32 years; at 48,000 it is 16 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 quick sense check

Each year the balance earns the return, then the withdrawal is taken out, until the money runs out. With typical inputs the calculator returns money lasts approx. of 21 years. 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.