Planning your retirement income shouldn’t feel like a spreadsheet marathon.
Our Account-Based Pension (ABP) Calculator makes it simple to set an annual income, apply CPI indexing, and automatically respect the legislated minimum drawdown for your age.
Whether you’re just starting your pension or reviewing an existing one, the calculator shows how your income, balance, returns, and fees interact over time.
Table of contents
- What you’ll need
- How to use the calculator
- Understanding the outputs
- Common pitfalls to avoid
- Next steps
What you’ll need
Before you begin, have these details handy:
- Opening ABP balance (e.g. $500,000)
- Your current age
- Expected investment return (per year)
- Estimated fees (per year)
- Your preferred annual pension amount
- Optional: expected inflation (CPI) rate if you want to index payments each year
These inputs allow the calculator to model realistic income and balance projections under Australian rules.
How to use the calculator
- Open the Account-Based Pension Calculator.
- Enter your starting balance, age, return assumptions, and fees.
- Choose your desired annual pension.
- If it’s below the minimum, the calculator will automatically apply the legislated minimum for your age.
- Turn on “Index by inflation (CPI)” if you want your pension to increase with living costs.
- Select your projection length and review the results in the charts.
Tip: The calculator displays both annual income and balance projections side by side, so you can see how withdrawals, earnings, and fees affect your pension over time.
Understanding the outputs
The results help you visualise how your income and balance evolve throughout retirement:
- Income projection – shows your pension payments year by year, with CPI adjustments (and minimums enforced).
- Balance projection – tracks how your super balance changes after withdrawals, earnings, and fees.
- Totals – shows total income drawn and your final balance at the end of the projection.
- Minimum drawdown table – displays the current legislated percentage by age group.
Example: A 70-year-old with a $500,000 balance must draw at least 5% ($25,000) in the first year. The minimum increases with age.
Common pitfalls to avoid
Avoid these common mistakes when modelling your pension:
- Ignoring minimum drawdowns: The government sets mandatory minimums based on age — the calculator applies them automatically.
- Underestimating fees: Even a 1% annual fee compounds over time, reducing your long-term balance.
- Overly optimistic returns: Run at least one scenario with a lower investment return to stress-test your plan.
- Forgetting inflation: Without CPI indexing, your real spending power can fall each year.
Next steps
Once you’ve tested a few scenarios:
- Compare different CPI rates (e.g. 2% vs 3%)
- Model higher drawdowns for the first few years of retirement
- See how lower returns affect your future balance
- Review the results with your financial adviser or fund representative
The goal isn’t just to maximise income — it’s to create a sustainable, flexible plan that lasts as long as you do.
Ready to model your plan?
Open the Account-Based Pension Calculator and explore how small changes in income, inflation, and returns can shape your retirement future.
Disclaimer: This article provides general information only and does not constitute financial advice. Always consider your personal circumstances and seek professional guidance before making financial decisions.