How super drawdown works
When you retire (from age 60 for most Australians), you can convert your super accumulation account into an account-based pension. This allows regular withdrawals at no tax — earnings in pension phase are tax-free, and withdrawals after age 60 are tax-free. You must withdraw at least the APRA minimum percentage each year, but there is no maximum.
The Age Pension safety net
From age 67, Australians who meet the assets and income tests can receive a full or part Age Pension. From 20 March 2026 the maximum single rate is $1,200.90 a fortnight, about $31,223 a year; for couples it is $905.20 each, about $47,070 a year combined. Both are indexed again on 20 September 2026. The Age Pension significantly reduces the amount you need to draw from your own portfolio, extending the life of your savings. Visit Services Australia for eligibility details.
3 strategies to make your money last longer
- Reduce discretionary spending by $5,000–10,000/yr — Even small spending reductions compound over a 25-year retirement. As shown above, cutting $5,000/yr can add years to your runway.
- Maintain a growth allocation in early retirement — Many retirees switch entirely to conservative investments. Keeping 30–50% in growth assets during the first decade can significantly improve long-term outcomes.
- Maximise Age Pension eligibility — Structure your assets to qualify for a part pension from age 67. From 1 July 2026 a single homeowner keeps the FULL pension up to $333,000 of assessable assets ($499,000 combined for a homeowner couple), after which it reduces by $3 per fortnight per $1,000. Assets restructuring before 67 is worth discussing with a financial adviser.