Superannuation calculator

• This is a model, not a prediction.
• The results from this calculator are based on the limited information that you have provided and assumptions made about the future. The amounts projected are estimates only provided by this model and are not guaranteed.
• This calculator cannot predict your final superannuation benefit with certainty because this will depend on your personal circumstances including unexpected events in your life and external factors such as investment earnings, tax and inflation. This calculator assumes that you can make steady, predictable contributions and that all assumptions including these external factors will operate at set, steady rates for as long as you remain in the fund, even if events turn out differently from what's assumed. These assumptions are essential so the calculator can show the effect of things you may be able to control, such as choosing a low-fee fund.
• You should consider updating the projections provided by this model regularly as your circumstances may have changed. You can also change and update some of the assumptions to reflect your personal circumstances.
• Do not rely solely on this calculator to make decisions about your retirement, there may be other factors to take into account. Consider your own investment objectives, financial situation and needs. You may wish to get advice from a licensed financial adviser.

The calculator works for accumulation funds only. It will not work for defined benefit funds.

We assume your account balance will receive all income and outgoings mid-year, apart from Government co-contributions which we assume are received at the end of the year.

Results are in today's dollars

Results are shown in today's dollars, which means they are adjusted for inflation.

Inflation assumptions

We make the following default assumptions on inflation (which you can change under the 'Advanced  - insurance and inflation' section that appears below calculator results):

• 2.5% each year due to the rising cost of living (CPI inflation)
• A further 1.5% each year due to the cost of rising community living standards

Self-employed?

To use the calculator:

• Change the employer contributions to 0% in 'You and your super fund'
• Enter all your contributions as voluntary contributions

Contributions

We assume that your employer contributes an amount equal to 11% of your ordinary time earnings (you can change this in 'You and your super fund').

In future years we assume that:

• Your employer and voluntary contributions will increase with inflation
• You will satisfy the Work test at older ages and so are able to contribute
• From 1 July 2021, the SG rate used for the default employer contribution rate is 10%. The SG rate is assumed to increase by 0.5% per annum until the SG rate reaches and stays at 12% from 1 July 2025 onwards.

Before tax (salary sacrifice) contributions

• We adjust these contributions so you don't exceed the concessional contributions cap (which applies to the total of your employer and before tax contributions)
• At 1 July 2021, the concessional contribution cap was $27,500 for all individuals.
• We assume that the concessional contribution cap will increase in future years with wage inflation once $2,500 steps are reached.

After tax contributions

• We adjust these contributions so you don't exceed the annual non-concessional contributions cap. We do not allow for a higher cap that can apply over three consecutive tax years in some circumstances because it is projecting regular contributions you will make each year
• The non-concessional contribution cap is set at 4 times the concessional cap and so will increase at the same time in future years.
• Should your projected total superannuation balance exceed the projected Transfer Balance Cap (see below) at any year in the projection, your projected non-concessional contributions will be restricted to zero for that year.

Transfer Balance Cap

• From 1 July 2017 there is a cap on the amount of superannuation eligible to be transferred to account based pensions in retirement. This Transfer Balance Cap was $1,700,000 at 1 July 2021 and is indexed with CPI inflation over time and increases in increments of $100,000.

Government contributions

• We assume that you qualify for the Government co-contributions if you make after tax contributions
• The total income used to determine if you qualify for any co-contributions is equal to your annual salary before tax and any salary sacrificed super contributions
• The projection allows for the Government low income superannuation tax offset. Your eligibility for this payment is based on your annual income, employer contributions and salary sacrifice contributions.

Low income superannuation tax offset

It is assumed that you qualify for any government low income superannuation tax offset if your income is below the relevant Government threshold. The total income used by the calculator to estimate if you qualify for any low income superannuation tax offset is equal to your salary before tax and before any salary sacrifice. Any income from other investments is not included in an estimate of total income. Eligibility for low income superannuation tax offset is also subject to age restrictions and minimum working requirements.

Results are shown at 1 July

Your projected super balance is shown at 1 July after you reach the indicated age on the chart. For example the super balance shown for age 65 is the balance at 1 July after your 65th birthday.

Investment return

We make the following default assumptions for investment return and earnings tax:

• Investment return before investment fees and earnings tax of 7.5% each year
• An effective tax rate on investment earnings of 7.0%.

Actual returns will vary significantly from year to year and could be negative in some years, particularly for investment mixes where more is invested in shares and property. This calculator does not allow for such variations. You can vary assumptions in 'You and your super fund' and 'Compare alternative fund'.

There is a lot to consider when comparing investment options between funds. Risk and return objectives and asset allocation within investment options may differ between funds and should be taken into account when comparing funds.

Tax

We assume that you have provided your Tax File Number to your superannuation fund.

15% tax is deducted from your employer contributions and before tax (salary sacrifice) contributions. We use the earnings tax assumptions above to allow for the tax on the investment earnings of your superannuation fund prior to retirement.

As we automatically cap your contributions, tax on excess concessional or non-concessional contributions is not relevant. No allowance is made for any other tax. In particular, if you receive a benefit amount before age 60 no allowance is made for any tax that you may have to pay.

Fees

Administration fees

We assume that dollar per annum administration fees will be charged mid-year on average and will increase with inflation each year and that the administration fees charged as a % of your balance are charged mid-year on average.

We assume that these fees are tax deductible within super.

We make a default assumption for administration fees of $74 per annum in today’s dollars.

Contribution fees

We assume that contribution fees are deducted from your contributions as they as paid into superannuation.

We assume that these fees are tax deductible within super.

We make a default assumption of 0% contribution fees.

Investment fees

Investment fees represent costs relating to the management of your investments that are directly deducted from your account.

We assume that investment fees charged as a % of your balance are charged mid-year on average.

We assume that these fees are tax deductible within super.

We make a default investment fee assumption of 0.85%. 

Indirect cost ratio / indirect costs

We assume that the indirect costs are charged as a % of your balance and are charged mid-year on average.

We assume that these fees are tax deductible within super and that tax deductions are applied before deducting these fees from the returns that are applied to your account.

We make a default assumption of 0% indirect costs.

Adviser Service fees

In 'Advanced settings' you can enter the adviser service fees that you are charged. We assume the dollar per annum adviser fees are charged mid-year on average and will increase with inflation each year and that the adviser fees charged as a % of your balance are charged mid-year on average.

We assume that these fees are tax deductible within super.

Insurance premiums

In 'Advanced settings' you can enter the insurance premiums that are charged annually to your account. We assume the same amount (in today’s dollars) will be deducted in future years until retirement.

We assume the same amount (in today’s dollars) will be deducted in future years until retirement.

Leaving insurance premiums at $0 will make a fees comparison easier if you wish to assess the insurance premiums and cover provided separately. Alternatively work out the insurance premiums in each fund for the same amount of cover and include this in your fund comparison.
We assume that insurance premiums are tax deductible within super.

We assume that these fees are insurance premiums tax deductible within super.

We make a default insurance premium assumption that $214 will be charged mid-year on average and will increase with inflation each year.

Further information

• Super contributions must remain in super until you have met a condition of release. Weigh up the benefits of extra super against your other priorities, for example paying off your credit cards.
• You will need to refer to your latest super account statement.