In short

Your income doesn't stop when your super runs down — the Age Pension is means-tested, so as your super balance falls, your pension entitlement rises to fill the gap. Super's job isn't to last forever; it funds a better lifestyle in the early, active years while the pension steadily takes over. Use the MoneySmart retirement planner, set a sustainable drawdown, and let the pension act as your safety net.

If "how much do I need to retire?" is the question that dominates the years before retirement, this is the one that haunts the years after: how long will my super actually last — and what happens when it's gone? It's a genuinely frightening thought, the idea of watching a balance you spent forty years building tick down towards zero. But here's the thing most people don't realise, and it changes everything: the premise is usually wrong. You don't run out of income when your super runs down. Understanding why turns this from a source of dread into a manageable plan. This article is general information only, not personal advice.

What does it really depend on?

How long your super lasts comes down to four things: how much you have, how much you draw out each year, what your investments earn after fees and inflation, and — the one people forget — the Age Pension, the means-tested government payment for Australians of pension age that quietly changes the whole equation. Get those four in view and the fog clears; leave the pension out, and you'll frighten yourself with a number that was never realistic.

What is the rough maths — and why is it only rough?

The instinctive way to estimate it is simple division: your balance divided by what you spend each year. On that crude sum, $400,000 drawn down at $30,000 a year looks like it lasts about 13 years (illustrative arithmetic only — $400,000 divided by $30,000). But the division misleads in both directions. It ignores what your remaining balance keeps earning while it stays invested, which makes it last considerably longer than the sum suggests; and it ignores inflation, which quietly erodes what each year's drawing actually buys. The two don't cancel out neatly, which is why the only reliable way to estimate it is a proper tool — the free retirement planner on the Government's MoneySmart website does the job, accounting for investment returns, inflation and the Age Pension together (ASIC MoneySmart, https://moneysmart.gov.au/retirement-income/retirement-planner). Reach for that before you reach for a scary back-of-envelope figure.

What is the part that changes everything — do you not run out of income?

This is the single most important idea in the whole article, so it's worth stating plainly. As your super draws down, you become entitled to more Age Pension. The pension is means-tested, so the less you have in assets and income, the more of it you receive (Services Australia, https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get). That means your total income doesn't fall off a cliff when your super depletes — it transitions. Early on, most of your income comes from your own super, with little or no pension. As the balance falls, the pension steadily rises to fill the gap, until eventually your income is topped up by, and perhaps entirely provided by, the Age Pension, which currently pays a single person up to $1,200.90 a fortnight (about $31,200 a year) as at the 20 March 2026 rates (Services Australia, https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get).

So the mental picture of hitting zero and being left with nothing is simply wrong. For most Australians, super's job was never to last forever — it is to fund a better lifestyle in the earlier, more active years, and to top up the pension. Drawing your super down over your retirement is very often the plan working as intended, not a failure. Our companion pieces on what happens when an account-based pension is exhausted, and on what the Age Pension pays, follow that transition in detail.

What levers make super last longer?

Within that reassuring frame, several things genuinely affect how long your super stretches, and most are at least partly in your hands. The biggest lever is how much you draw: drawing less makes it last longer, but that has to be balanced against actually enjoying your money while you are active enough to, a tension our article on retirement spending phases explores.

One rule sets a floor under your drawings. An account-based pension — the most common way to turn super into retirement income — requires you to withdraw a minimum percentage of the account balance each year, and that percentage rises as you age. The standard minimum (unchanged for the 2026-27 financial year, as these percentages are fixed rather than indexed) is 4% if you are under 65, 5% from 65 to 74, 6% from 75 to 79, 7% from 80 to 84, 9% from 85 to 89, 11% from 90 to 94, and 14% at 95 or older (ATO, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/paying-smsf-benefits/income-stream-pension-rules-and-payments; ATO key super rates, https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/payments-from-super). Those are minimums you must take, not caps — and because the percentage climbs with age, the account is designed to empty faster in your later years (ASIC MoneySmart, https://moneysmart.gov.au/retirement-income/account-based-pensions).

The other levers are about protecting the balance. Your investment mix matters: too conservative and your returns may not keep up with your drawings and inflation, too aggressive and a market fall at the wrong moment hurts, so most retirees hold a diversified mix somewhere in between. Sequencing risk is the sharp one — a run of poor returns early in retirement drains a balance far faster than the same poor returns later, which is why holding a cash buffer, so you are not forced to sell investments in a downturn, matters so much (our pieces on cash buffers and bucket strategies cover this). Fees quietly shorten how long your super lasts, so they are worth checking. And underpinning all of it, plan for a long retirement — thirty years or more — rather than an average one.

What do the worked examples show?

These show the two shapes the question takes — the pension backstop catching a modest balance, and the longevity plan for a larger one. They are illustrative only, not personal advice, and the figures are illustrative.

Consider Margaret, 68, a single homeowner with $250,000 in an account-based pension who is frightened of the balance running out. On these facts the minimum she must draw at her age is 5%, about $12,500 in the first year, though she may choose to draw more to fund her lifestyle (ATO, https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/payments-from-super). As that balance falls over the years, her Age Pension rises to fill the gap, climbing towards the full single rate of about $31,200 a year (Services Australia, https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get). On these facts it is generally rational for someone in Margaret's position to see the drawdown not as a countdown to zero but as a planned transition — her super funding the early active years and the pension steadily taking over — and to run her real numbers through the MoneySmart planner rather than a frightening division sum.

Now consider Robert and Helen, both 70, a homeowner couple with $600,000 in super who could comfortably spend more but are terrified of outliving it, so they under-spend and live smaller than they need to. On these facts their minimum drawdown at 70 is 5%, about $30,000 a year, and as their balance draws down they move onto a growing part Age Pension that cushions the fall in their own savings (Services Australia, https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get). On these facts it is generally rational for a couple in their position to let the pension backstop give them the confidence to spend on the active years they will not get back, while keeping a cash buffer against bad markets and revisiting the drawdown each year — because dying with the largest possible balance was never the goal.

What mindset helps most?

Here's where the fear does real damage if you let it. Terrified of running out, some retirees under-spend — living smaller, colder, quieter lives than they can actually afford, and leaving a large balance behind that they could have enjoyed. That is a genuine loss too, and the Age Pension backstop is exactly what should give you the confidence to avoid it. The goal of retirement isn't to die with the biggest possible super balance, nor to hoard against a zero that never really arrives. It is to fund the life you want, with the Age Pension as the floor beneath you.

So do the sensible things: run your real numbers through the MoneySmart planner, set a drawdown you can sustain and revisit it each year, keep a cash buffer against bad markets, hold down your fees, and plan for a long life. Then let the pension do its job as your safety net — and get personal advice to set a drawdown that fits your own life expectancy and goals. Asked properly, the question isn't "will I run out?" It's "am I drawing at a rate that funds the life I want?" — and that is a question with a good answer.

Sources

Key takeaways

  • Your total income doesn't fall off a cliff when your super depletes — because the Age Pension is means-tested, your entitlement rises as your super balance falls, so the transition is gradual.
  • A simple balance-divided-by-spending sum misleads, since it ignores both continued investment returns (which stretch the balance further) and inflation (which erodes purchasing power) — use a proper tool like the MoneySmart retirement planner instead.
  • Account-based pensions require a minimum annual drawdown that rises with age — 4% under 65, up to 14% at 95 or older — and these percentages are fixed rates, unchanged for FY2026-27.
  • Sequencing risk means a run of poor investment returns early in retirement drains a balance far faster than the same poor returns later — a cash buffer helps avoid being forced to sell in a downturn.
  • Fear of running out causes some retirees to under-spend and live smaller than they can afford — the Age Pension backstop is exactly what should give the confidence to spend on the active years.

Frequently asked questions

Does my income stop when my super runs out?

No. Because the Age Pension is means-tested, the less you have in assets and income, the more pension you receive. As your super balance falls, your pension entitlement rises to fill the gap, so your total income transitions gradually rather than dropping to zero.

How can I estimate how long my super will last?

A simple balance-divided-by-spending calculation misleads because it ignores ongoing investment returns (which stretch the balance further) and inflation (which erodes what each year's drawing buys). Use a proper tool like the free MoneySmart retirement planner, which accounts for investment returns, inflation and the Age Pension together.

What is the minimum I have to draw from my account-based pension?

The minimum percentage rises with age: 4% if you're under 65, 5% from 65 to 74, 6% from 75 to 79, 7% from 80 to 84, 9% from 85 to 89, 11% from 90 to 94, and 14% at 95 or older. These are minimums you must take, not caps, and the rates are fixed rather than indexed.

What is sequencing risk in retirement?

It's the risk that a run of poor investment returns early in retirement drains your super balance far faster than the same poor returns would if they happened later, because you're drawing down while the balance is falling. Holding a cash buffer, so you're not forced to sell investments in a downturn, helps manage this risk.

A note on advice. This article is general information only and doesn't account for your personal circumstances. Everyone's situation is different — before acting, it's worth talking it through with a licensed adviser who knows your full picture.