Drawdown order: which pot comes first
Whether the engine drains non-super or super first during retirement.
What it models
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Super's legal minimum drawdown is always paid out first regardless of choice. This strategy controls only the discretionary drawdown above the legal minimum.
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Non-super first: drain non-super investments before touching discretionary super.
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Super first: take the discretionary drawdown from super above the legal minimum, leaving non-super to compound.
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Proportional: draw from super and non-super in proportion to their balances each year, on top of the legal super minimum.
When someone might apply it
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Some users drain non-super first to maximise the time super sits in the 0% earnings tax retirement phase.
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Some users drain super first when estate planning matters. Non-super has the 50% CGT discount and the tax-free threshold for beneficiaries.
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Some users prefer proportional drawdown because it keeps the asset allocation roughly constant year over year.
Trade-offs
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Super-first means the non-super pool grows in retirement, which adds to the eventual estate but reduces the tax efficiency of super.
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Non-super-first depletes the bridge fund first; if you live long enough super covers everything, but a market crash mid-bridge can hurt.
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Proportional is the most "average" outcome but rarely the leading performer in any specific scenario.
ProjectFi is a planning tool, not financial advice. Projections are estimates only. Please consult a licensed financial adviser before making investment decisions.