Current as of 17 Feb 2026. Always verify current year rates.
How is the minimum drawdown calculated?
Short answer:
In most cases, the minimum drawdown is your account‑based pension balance at 1 July multiplied by the minimum percentage for your age. If you start a pension part‑way through the year, your minimum can be pro‑rated (with some exceptions). Funds usually calculate this for you, but it’s worth knowing the steps. Use the current ATO table for the applicable percentages.
Key takeaways
Usually based on 1 July balance and your age band
If you start mid‑year, pro‑rata rules can apply
Your fund calculates it, but you can sanity‑check the method
Minimums are rules, not a personal spending recommendation
Always use the live ATO table for current percentages
Why this matters
Knowing how the minimum is worked out helps you spot issues early and reduces stress. It also helps you separate ‘compliance minimum’ from ‘sustainable spending’.
Mini-plan (3-4 steps)
- Find your pension’s 1 July balance (or start date balance if new).
- Check your age band on the current ATO minimum drawdown table.
- Confirm whether pro‑rata rules apply for the year you started.
- Compare the minimum to your spending needs and set a review point.
Related questions
Sources (so you can verify)
Disclaimer: Information provided is general in nature and does not constitute personal financial advice. You should consider seeking advice from a licensed financial planner before making any financial decisions.
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