Concrete cracking and bond degradation caused by corrosion lead to retraction slip of prestressed steel strands and changes in transfer length. Simulating the retraction effect of corroded prestressed steel strands is a difficulty in current research. A numerical model for corroded prestressed concrete (PC) components based on Cohesive contact was established. The effects of different corrosion locations and corrosion rates on the retraction slip and transfer length of prestressed steel strands were analyzed. The rationality of the model was verified based on existing experimental data. Results indicate that Cohesive contact can effectively simulate the retraction effect of prestressed steel strands under local corrosion. The retraction slip at the cut end of the steel strand increases with the increase of corrosion rate. Compared with uncorroded components, the retraction slip increases by 16.10% when the corrosion rate at the end is 35%. When the local corrosion rate reaches 35%, the transfer length increases by 30.6%. As the corrosion location moves from the end to the mid-span, the effect of local corrosion of the steel strand on the transfer length gradually weakens.