Retirement Projector

Welcome

The ASFA Retirement Projector is a tool that enables you to get a general picture of your likely superannuation account balance at retirement, based on your current circumstances. It also enables you to calculate what difference it would make to your retirement balance if you made certain changes now; for instance, putting more money into your super account.

By entering data about yourself and your partner, you will receive a projection of how much superannuation savings you are likely to retire with and how long those retirement savings are likely to last.

For more information on how much you will need in retirement, the ASFA Retirement Standard provides a guide to how much retirement income is required for singles and couples to lead a 'modest' or 'comfortable' lifestyle in retirement.

Your details

You

Work break

Your partner

Work break

Your super

You

Investment strategy
Additional voluntary contributions

Your partner

Investment strategy
Additional voluntary contributions

Your results

The retirement pension is projected to last until you are over age 100.

The Initial projection is based on a comfortable retirement lifestyle according to the ASFA Retirement Standard for a single person ($42,569 p.a.). You can adjust this using the "Retirement Income" slider.

Look at the results below to see how your account balance and income are projected to change over time.

The graph below shows how your account balance is projected to change over time.

The graph below shows how your and your partner's combined account balances are projected to change over time.

Note: all figures are in today's dollars

Table view
Initial projection Adjusted projection
Your account balance at your retirement age
Your partner's account balance at your partner's retirement age
The combined retirement pension is projected to last until you are

The graph below shows how your adjusted income from various sources is projected to change over time.

The graph below shows how your and your partner's adjusted income from various sources is projected to change over time.

Note: all figures are in today's dollars

Table view
Initial projection Adjusted projection
Your account balance at your retirement age
Your partner's account balance at your partner's retirement age
The combined retirement pension is projected to last until you are

The following table shows your projected account balance, based on the information entered and how you have adjusted the calculator sliders.

The table below shows your and your partner's combined projected account balances, based on the information entered and how you have adjusted the calculator sliders.

Note: all figures are in today's dollars

Graph view
Initial projection Adjusted projection
Your account balance at your retirement age
Your partner's account balance at your partner's retirement age
The combined retirement pension is projected to last until you are

The following table shows your adjusted projected source of income, based on the information entered and how you have adjusted the calculator sliders.

The table below shows your and your partner's adjusted combined projected sources of income, based on the information entered and how you have adjusted the calculator sliders.

Note: all figures are in today's dollars

Graph view
Initial projection Adjusted projection
Your account balance at your retirement age
Your partner's account balance at your partner's retirement age
The combined retirement pension is projected to last until you are

Adjust your results

Notes & Assumptions

Assumptions

The results produced by this calculator are based on various underlying assumptions. You can change the value of the following important assumptions. For more detail, please see the notes below.

Item Value Description
General wage inflation Wages are assumed to increase at this rate over the projection period. It is also used as a discount rate to express results in today's dollars.
Employer contribution rate The employer is assumed to contribute this percentage of before-tax salary in each projection year, subject to the "Apply minimum SG contribution?" and "Apply SG Maximum Superannuation Contribution Base?" settings below. Any salary sacrifice contributions entered by you are in addition to these contributions.
Apply minimum SG contribution? If you select "Yes", your Superannuation Guarantee (SG) entitlement is estimated in each projection year with reference to the SG charge rates which you can view in the table in the Notes section below. If your employer's projected contributions in the relevant projection year are below this amount, those contributions are increased to equal your SG entitlement.
Apply SG Maximum Superannuation Contribution Base? If you select "Yes", the "salary" used to estimate your Superannuation Guarantee (SG) entitlement is capped at the projected SG Maximum Superannuation Contribution Base in each projection year.
Superannuation account administration fee (%) The annual percentage administration fee in the superannuation account.
Superannuation account administration fee ($) The annual dollar amount administration fee in the superannuation account.
Pension account administration fee (%) The annual percentage administration fee in the pension account.
Pension account administration fee ($) The annual dollar amount administration fee in the pension account.
Insurance premiums The annual insurance premium deducted from the superannuation account in each projection year including death only, death and TPD or income protection cover.
Home ownership (for Age Pension purposes) This determines the level of assets you can have before your Age Pension entitlement starts to reduce under the assets test.

Notes

General

The calculations in this calculator are valid for the 2016/17 financial year.

No allowance has been made for any changes proposed in the 2015/16 Federal Budget that have not been legislated as of 1 July 2016.

For the purposes of determining income tax, contribution limits and minimum and maximum pension withdrawal amounts, it is assumed that the projection is run on the first day of the financial year and that you are your current age for the entire financial year. The calculator projects your superannuation balance over a whole number of years.

It is assumed you have provided your tax file number to your superannuation fund. This calculator is not appropriate for members of an untaxed fund.

The results are a projection only and are not guaranteed.

General wage inflation

By default, wages are assumed to increase by 3.5% p.a. in each year. All results are expressed in today's dollars by discounting at this rate. You can change the assumed rate at the top of this page.

The default assumption is set at 1% above the mid-point of the Reserve Bank of Australia's 2-3% p.a. target range for price inflation. This is consistent with the average historic difference between wage and price inflation in Australia over the last 30 years as measured by increases in Average Weekly Ordinary Time Earnings and the Consumer Price Index respectively.

Personal income

Salary refers to your taxable salary income. This usually means your regular gross pay, but commissions or other allowances may need to be included depending on your own particular circumstances. It is assumed your salary increases each projection year in line with the assumed level of general wage inflation. Income tax is calculated by applying personal income tax rates plus the Medicare Levy (but not the Medicare Levy Surcharge) to your projected taxable income in each projection year. The personal income tax rates used for the 2015/16, 2016/17 and 2017/18 projection years are the legislated tax rates for those years as at 1 July 2016. In each projected year subsequent to 2017/18, the personal income tax brackets (and Medicare Levy thresholds) are assumed to increase in line with the assumed level of general wage inflation, and the personal income tax rates are assumed to remain unchanged. The temporary budget repair levy of 2% on the part of a personís taxable income which exceeds $180,000 is assumed to apply for the 2015/16 and 2016/17 financial years. You are assumed to be an Australian resident for taxation purposes. In calculating the Medicare Levy, the individual income thresholds are assumed to apply, and the family income thresholds are assumed not to apply. No allowance is made for the Mature Age Worker Tax Offset.

The Medicare Levy is assumed to be 2% of taxable income for the 2016/17 tax year and subsequent years.

In each projection year, your entitlement for the Low Income Tax Offset (LITO) is estimated based on your taxable income. The rates and thresholds used to calculate LITO in the 2016/17 projection year are assumed to be the legislated rates and thresholds for those years as at 1 July 2016. The maximum amount of LITO and the income threshold over which the LITO starts to reduce are assumed to increase in each year subsequent to 2016/17 in line with the assumed level of general wage inflation.

In each projection year in which you are determined to be eligible for an Age Pension, your entitlement for the Seniors and Pensioners Tax Offset (SAPTO) is estimated based on your rebatable income. Your rebatable income is assumed to equal your taxable income plus any salary sacrifice contributions. The maximum amount of SAPTO is assumed to increase each year in line with the assumed level of general wage inflation.

If you indicate you work part-time while taking a break from full-time work, it is assumed your gross salary and superannuation contributions during the part-time period are the same proportion of your full-time gross salary and superannuation contributions as your part-time work bears to your full-time work.

Contributions

Employer contributions include all concessional contributions made by your employer other than salary sacrifice contributions.

By default it is assumed you receive employer contributions of 9.5 percent of salary, subject to a maximum of the concessional contribution limit. You can change the assumed employer contribution rate. By default, in each projection year, your Superannuation Guarantee (SG) entitlement is estimated and your employer's contribution is increased to your estimated SG entitlement if below this entitlement. You can disable this functionality. Your SG entitlement is calculated in each projection year by multiplying the SG charge rate assumed to apply in that year by an income base. By default, the income base is your projected salary (before tax), but you can elect to cap this at the SG Maximum Contribution Base, by changing the "Apply SG Maximum Superannuation Contribution Base?" setting.

The SG charge rates assumed to apply in each year are as follows:

Year to 30 June Superannuation guarantee charge rate %
2016-2021 9.5%
2022 10%
2023 10.5%
2024 11%
2025 11.5%
2026 and thereafter 12%

In addition you should enter your current level of after-tax (non-concessional) and salary sacrifice (concessional) contributions. It is assumed that your employer contributions are not affected by any salary sacrifice contributions.

Any contributions entered by you (both employer and personal contributions) are assumed to increase in each projection year in line with your salary. Where a calculated contribution amount exceeds the relevant contribution limit, the assumed contribution is reduced to that limit to ensure the contribution is not excessive. If the calculated excess contribution is concessional, an additional non-concessional contribution is assumed to be made so that your calculated take-home pay is the same as would have been the case if the full calculated excess concessional contribution had been made.

The concessional and non-concessional contributions limits of $30,000 and $180,000 respectively are subject to indexation. Allowance is made for the higher concessional contributions cap of $35,000 (not indexed) applying from 1 July 2015 for individuals aged 50 and over on 30 June 2016. Contributions are assumed to be spread evenly across the year on a monthly basis. Contributions are assumed to be spread evenly across each projection year on a monthly basis and are to be paid until the retirement age you enter.

The calculator assumes that the maximum amount of non-concessional contribution each year is subject to a maximum of your annual take home pay (net of tax and any salary sacrifice contributions).

Contributions tax

Concessional contributions are assumed to be subject to tax at 30% in the super fund for individuals with income including concessional contributions over $300,000, and at 15% otherwise. Where an individualís income exceeds $300,000 a year due to the inclusion of their concessional contributions, the higher tax rate of 30% is assumed to apply to the excess over $300,000, with 15% applying to the balance of concessional contributions.

Co-contributions

For each projection year in which it is assumed you would make an after-tax (non-concessional) contribution, your co-contribution eligibility is assessed and a co-contribution is added to the projected superannuation account if applicable.

Your eligibility is assessed by comparing the projected "relevant income" amount to the co-contribution thresholds, and applying the standard rules for calculating the co-contribution. The "relevant income" amount is assumed to be your taxable income plus salary sacrifice contributions (the actual co-contribution income test also includes other amounts).

It is assumed you meet the other co-contribution eligibility criteria.

The lower co-contribution threshold is assumed to increase in line with the assumed level of general wage inflation each year. The co-contribution matching rate is assumed to be 50c per dollar contributed and the maximum co-contribution is assumed to be $500. The upper co-contribution threshold is assumed to be $15,000 more than the lower co-contribution threshold. As assumptions have been made about your eligibility for the co-contribution, including your "relevant income", the projected co-contribution may not represent your actual co-contribution entitlement.

Any co-contribution payable is added to your projected superannuation account on 30 June in the respective projection year.

Low income superannuation contribution (LISC)

For each projection year prior to 2017 in which it is assumed you or your employer would make a concessional contribution, your eligibility for the LISC is assessed and a LISC is added to the projected superannuation account if applicable.

In each case, your eligibility is assessed by comparing your calculated assessable income amount plus salary sacrifice contributions in the relevant year to the estimated LISC income threshold in that year, and applying the standard rules for calculating the LISC. It is assumed you have no reportable fringe benefits.

It is assumed you meet the other LISC eligibility criteria.

The LISC income threshold and maximum payment amount are assumed to remain constant over the projection period until 30 June 2017.

Any LISC payable is added to your projected superannuation account on 30 June in the respective projection year.

In line with legislation as at 1 July 2015, it is assumed that the LISC will not be payable in respect of concessional contributions made on or after 1 July 2017.

Investment returns

The calculator assumes the following investment returns for each investment strategy.

Investment returns for each investment strategy
Investment option Proportion invested in growth assets * Investment return in superannuation account Investment return in pension account
High Growth 100% 7.72% 8.30%
Growth 85% 7.36% 8.00%
Balanced (default) 70% 6.83% 7.50%
Moderate 50% 6.30% 7.00%
Conservative 30% 5.72% 6.50%
Cash 0% 4.25% 5.00%

* This shows the proportion invested in growth assets such as shares and property. The remaining assets are assumed to be invested in defensive assets such as fixed interest and cash. Growth assets are generally expected to provide higher investment returns over the long term than defensive assets, but can be susceptible to greater variation in investment returns in the short term.

† The superannuation account returns shown are % p.a., after investment management fees and tax.

‡ The pension account returns shown are % p.a., after investment management fees, nil tax.

The investment returns you select with the sliders on the Results page are assumed to be "After Fees and Tax". This means after investment management fees and tax levied within a superannuation fund on investment gains only. It does not take into account other taxes such as those payable upon withdrawal of a benefit.

The assumed investment returns are illustrative and should not be taken to be an estimate of the amount of investment earnings you may receive. Investment returns are assumed to remain constant over the projection period.

Fees and insurance premiums

The "Investment returns" section above includes an implicit allowance for investment management fees assumed to apply to each investment strategy. The following additional default fees and insurance premiums are assumed to apply. You can change the assumed fees and insurance premiums at the top of this page.

Fee type Superannuation account Pension account
Administration fee $52 per year $52 per year
Contribution fee (% of contributions) 0% per year n/a
Insurance premiums $156 per year n/a

Fees are assumed to be tax-deductible at 15% in the fund. Fees and insurance premiums are assumed to be deducted on a monthly basis.

Advice fees are assumed to be nil but they can be incorporated into the calculation by adjusting the administration fee to reflect any advice fees. Dollar fees and insurance premiums are assumed to increase in line with the assumed level of general wage inflation. Other fees are assumed to remain constant in percentage terms over the projection period.

Retirement

It is assumed you will retire at the end of the financial year in which you reach your nominated retirement age.

It is assumed you will have reached your preservation age or will have met a relevant condition of release as at your nominated retirement date. If this is not the case, you will not be able to access your superannuation benefits until after you have reached your preservation age or satisfied a relevant condition of release. You should check your preservation age before using the calculator.

By default, the after-tax income in retirement you need is set to a comfortable lifestyle according to the ASFA Retirement Standard. You can change the assumed level of retirement income needs on the Results page.

Pension withdrawals

It is assumed you will commence an account-based pension with your superannuation savings balance at the time of full retirement. Pension withdrawals are assumed to be made on a monthly basis.

Pension withdrawals after age 60 are assumed to be tax-free. For the purpose of calculating taxation on pension withdrawals before age 60, the pension is assumed to commence after 1 July 2007 and hence the proportioning rule applies which divides the pension income into a tax-free and taxable component.

Centrelink

Your Age Pension amount is estimated in each projection year from your retirement age and added to the projection. If you have indicated you have a partner, you are assumed to be a couple for Age Pension purposes; otherwise, you are assumed to be single for Age Pension purposes. Your Age Pension amount is assumed to be subject to the income test reduction rate of 50c per dollar over the threshold. It is assumed you have no assets or income (other than the amounts shown in the calculator) which affect your Age Pension payment. The Age Pension payment is assumed to be included in your assessable income for taxation purposes.

Your salary is assumed to be included in the income test. In assessing your income for the income test, the Work Bonus is assumed to apply to salary income.

It is assumed that any pensions commence on or after 1 January 2015, and that the assumed income from the account based pension for purposes of the income test is based on the standard deeming rules.

Your pension account balance is assumed to be included in the assets test.

The income test and assets test thresholds are assumed to be indexed at the end of each projection year in line with the assumed level of general wage inflation. For the projection year from 1 July 2016 to 30 June 2017 and subsequent years, it is assumed that the legislated changes to the assets test threshold and taper rate from 1 January 2017 are applied for the full projection year.

For the purpose of estimating your Age Pension entitlement, you are assumed to be a homeowner by default, but you can change this at the top of this page. You are assumed to meet all other criteria used when assessing your Age Pension eligibility.

Life expectancy

The Australian Life Tables 2010-12 are used as a basis for illustrating how long individuals could be expected to live, as well as for determining your life expectancy for taxation purposes.

Life expectancy indicators are rounded up to whole numbers of years.

This tool currently does not allow for the impact of recently passed legislation related to the May 2016 budget. You should seek the assistance of a financial adviser if you satisfy one or more of the conditions listed below:

- Your total superannuation balance exceeds (or is projected to exceed) $1.6 million.

- You are likely to contribute over $25,000 p.a. before tax in coming years.

- You are likely to contribute over $100,000 p.a. after tax in coming years.

- You hold a transition to retirement (TTR) account.

- The sum of your taxable income and before tax contributions are likely to exceed $250,000.

The figures provided by this calculator are based on a series of assumptions (which you can view within the calculator) and are general illustrations only. They are provided for information and to illustrate scenarios. They do not take all of your personal circumstances into account and are not intended to be a substitute for professional advice.

While all reasonable care has been taken in preparing and designing the calculators, ASFA provides no warranties as to their accuracy and shall not be responsible for any action taken on the basis of this calculator.