Superannuation Drawdown Calculator
Estimate how long your superannuation savings will last based on your withdrawal strategy, investment mix, and other factors.
Superannuation Drawdown
Superannuation drawdown refers to the process of withdrawing money from your retirement savings after you’ve reached preservation age. Unlike an annuity that provides a guaranteed income for life, drawdown gives you flexibility to access your super funds while keeping the remaining balance invested.
The key benefit of drawdown is control over your retirement income, allowing you to adjust withdrawals based on your changing needs. However, this flexibility comes with the responsibility of managing your investments and ensuring your savings last throughout retirement.
Several factors affect how long your superannuation will last, including your initial balance, withdrawal rate, investment returns, inflation, and fees. Our calculator helps you visualize these factors and make informed decisions about your retirement strategy.
How to Use the Superannuation Drawdown Calculator
Step 1: Enter Your Initial Balance and Withdrawal Plan
Input your current superannuation balance and how much you plan to withdraw annually. Consider whether you want to adjust your withdrawals for inflation over time, which helps maintain your purchasing power but depletes your fund faster.
Step 2: Select Your Investment Strategy
Choose an investment mix that aligns with your risk tolerance. A cautious approach emphasizes cash and fixed interest, while an adventurous strategy allocates more to shares. You can also create a custom mix if you have specific allocation preferences.
Step 3: Specify Return Expectations and Fees
Select a return scenario (pessimistic, middling, or optimistic) or enter custom return rates for each asset class. Don’t forget to include your fund’s annual fees, as these can significantly impact long-term performance.
Step 4: Add Personal Details
Enter your current age, gender, and whether you plan to take a tax-free lump sum (up to 25% of your balance). These details help the calculator estimate how long your fund might last relative to your life expectancy.
Step 5: Analyze Your Results
Review the projected fund duration, balance at life expectancy, and the year-by-year chart showing your fund’s trajectory. Consider adjusting your inputs to see how different scenarios might affect your retirement income sustainability.