|General assumptions and limitations|
|1.||The calculator assumes that you can only invest in one investment option. If a member has multiple investment options the actual outcome may differ substantially from the estimate.
|2.||The calculations are a general illustration of an accumulation account that converts to an account-based pension at the nominated retirement age.
|3.||The default price inflation rate/consumer price index (CPI) used is 2.5%. This rate has been based on historical and expected future rates and is the mid-point of the RBA target range for inflation. The actual rate of price inflation may differ significantly from this assumption.
|4.||Salaries are assumed to increase at a rate of 3.75% (i.e. 2.5% price inflation plus a margin over this of 1.25%). The actual rate may differ significantly from this assumption. You may change the default rate to see the effect that this may have.
|5.||No allowance has been made for taxes (including tax on retirement income) with the exception of tax within the superannuation fund. If any other taxes apply, the calculator's results may be incorrect and may not apply to you.
|6.||It is assumed that income is paid continuously unless otherwise indicated by you.
|7.||This calculator is not suitable for members of defined benefit funds.
|8.||The calculator assumes that the date set on your computer is correct. Projections are started from this date, and your age is also assumed to be at this date.
|9.||You are fully retired at nominated retirement age. There is no allowance for transitioning to retirement. No allowance has been made for changes in regular contributions during the super projection phase of the calculator.
|10.||The 'Modest lifestyle' and 'Comfortable lifestyle' benefits are based on a survey by ASFA Retirement Standard (September Quarter 2018) stating that the total annual income needed to fund a modest retirement is $27,595 (single)/$39,666 (couple) and a comfortable retirement is $43,200 (single)/$60,843 (couple).
|11.||The results displayed by this calculator are in today's dollars, not in future dollars.
|12.||The calculated life expectancy is based on Australian Life Tables for years 2010-12.
|13.||Retirement age must be at least 2 years greater than your current age, allowing for at least 1 financial year of projections.
|Assumptions for the accumulation phase of the projections|
|1.||The Superannuation Guarantee rate is assumed to be 9.5% of your gross salary. Employer (concessional) contributions are assumed to be not less than the minimum amounts to which you are entitled under Superannuation Guarantee legislation and are subject to 15% contributions tax. No allowance has been made for the maximum superannuation contribution base ($54,030 per quarter for the 2018/19 financial year).|
|2.||Salary sacrifice and other employer concessional contributions are limited to 100% of gross salary for superannuation purposes, whereas after tax (non-concessional) contributions are only limited by the contributions cap.|
|3.||a) If you are invested in LifetimeOne, your assumed Investment Earnings (net of tax and investment management fees) are credited to your account balance at the rate specified in the calculator table.
b) If you are invested in any other option other than LifetimeOne, the calculator will estimate your investment earnings (net of tax and investment management fees) based on the investment objective for the Balanced investment option. Your investment earnings will be credited to your account balance at the default rate of 6.0%, which was the investment objective for the Balanced investment option as at June 2019. You may specify a rate of investment return different from the default rate. The actual rate of return for your investments may differ significantly from this assumption.
|40 and under||6.50%|
|70 and over||4.50%|
|4.||A default amount of $1.50 per week is provided for 'Fees deducted'.|
The calculator estimates earnings based on the investment objective for the option. The investment objective is an estimate of the expected earnings after fees have been deducted. As such apart from the $1.50 per week, no fees are included in the calculator. Please see the Product Disclosure Statement for further information on the fees and other costs you may be charged. The actual fees and costs deducted from your investment may vary over time.
|5.||A default amount of $6.46 per week is provided for 'Insurance premiums deducted' as an average premium for someone in an industry super fund. You may change the default amount to see the effect that this may have. The actual insurance premiums deducted and the impact on your investment may differ significantly from this assumption. Insurance premiums vary significantly between individuals and it is recommended you enter an amount that is being deducted from your current account.|
|6.||The required income is indexed to inflation (i.e. 2.5%).|
|7.||Government co-contribution has been included in the calculation for members with income under the threshold. This has been based on the gross salary and after tax contributions that have been entered into the calculator.|
|8.||The government co-contribution Lower Income Limit is indexed in line with Average Weekly Ordinary Times Earning (currently 4.0% p.a). The actual rate of wage inflation may differ significantly from this assumption. You may change the default rate to see the effect that this may have.|
|9.||An allowance for the low income superannuation tax offset (LISTO) has been included in this calculator. The LISTO salary threshold is indexed with a default inflation rate of 2.5% p.a. The actual rate of inflation may differ significantly from this assumption. You may change the default rate to see the effect that this may have.|
|10.||Concessional (pre-tax and Superannuation Guarantee) contributions are capped at a maximum of $25,000 and indexed (increments of $2,500). After-tax contributions are capped at a maximum of four times the concessional contributions limit (currently $25,000) in the projection of the account balance.|
|11.||No allowance has been made for the bring-forward provision for people under 65 years old. Find out more here.|
|12.||No allowance has been made for Government benefits or other income sources prior to retirement with the exception of the Government super co-contribution. If any of these other income sources apply before retirement, the calculator's results will not give a true reflection of the longevity of your own resources in retirement.|
|13.||No allowance has been made for spouse contributions.|
|Assumptions for the retirement phase of the projections|
|1.||Investment earnings (net of tax and investment management fees) in the retirement phase are credited to your pension account balance at the nominated investment return. The default rate is (TBC) p.a. for the retirement phase. The default rate is based on the fund’s investment objective for the Conservative Balanced investment option as at June 2019. You may specify a rate of investment return different from the default rate. The actual rate of return for your investments may differ significantly from this assumption.|
|2.||These calculations make no allowance for the effect of an account-based pension continuing to a surviving spouse on the death of the member.|
|3.||The minimum pension factors table is current as at 1 July 2018.|
|4.||A default amount of $1.50 per week is provided for 'Fees deducted'. The calculator estimates earnings based on the investment objective for the option. The investment objective is an estimate of the expected earnings after fees have been deducted. As such apart from the $1.50 per week, no fees are included in the calculator. The default investment option is Conservative Balanced. Please see the Product Disclosure Statement for further information on the fees and other costs you may be charged. The actual fees and costs deducted from your investment may vary over time.|
|5.||These calculations make no allowance for any entry fees, service fees or switching fees deducted from your pension account.|
|6.||These calculations make no allowance for any income payment fees deducted from your account-based pension account.|
|7.||Age Pension rules have been applied to this calculator as at 1 July 2018. No other benefit entitlements are considered.|
|8.||The Age Pension will increase at an assumed rate of 2.5%p.a.|
|9.||The Age Pension applies if the assets test and the income test applied to this calculator do not exceed the maximum thresholds.|
|10.||If a partner is selected, the Age Pension entitlements are assessed as a couple.|
|11.||The income test is based on all income derived from:
- Account-based income stream
- Partner's account-based income stream
- Income from personal and financial assets outside super
- Deemed income from financial investment assets.
|12.||Deemed income from financial investment assets is calculated using the current deeming rates rules. You can find further details about deeming rates here |
|13.||The asset test is based on the following assets:
- Account-based income stream account balance
- Partner's account-based income stream account balance
- Personal assets (e.g. personal belongings)
- Financial investment assets (e.g. bank account, shares)
- Non-financial investment assets (e.g. rental property)
|14.||Non-superannuation investments are assumed to be invested more conservatively than superannuation/allocated pension assets, and allowing for personal assets to increase in value at the rate of price inflation. Personal assets are assumed to be replaced with new items. Based on this assumption and an actuarial recommendation, the following default rates are applied:|
|Financial investment assets (e.g. shares, bank account)
|Personal assets (car, clothes etc.)
|Non-financial investment assets (e.g. rental property)
|15.||The income test and asset test thresholds are increased at an assumed rate of 2.5% p.a.|
|16.||An allowance is made for Deductible Amount which has been calculated as the balance of the account-based income stream at retirement, divided by the life expectancy.|
|17.||The required income in retirement (RIIR) is default to the 'Comfortable lifestyle' (ASFA Retirement Standard - September Quarter 2018). The amount is made up of the following income (in order):
- Funds available from assets outside of super (e.g. bank account)
- Income from personal assets (if any)
- Income from financial investment assets
- Income from non-financial investment assets
- Minimum pension from the Account-based income stream
- Minimum pension from the Partner's Account based income stream.
- CentreLink age pension.
|18.||Should the income from these sources be less than the RIIR, then the deficit is obtained by proportionally increasing the pension from the account-based income stream and the pension from the partner's account-based income stream.|
|19.||We take into account the lifetime Balance Transfer Cap (BTC), which limits the assets that can be maintained in pension assets. Any amount in excess of the BTC is treated as a financial investment asset.|
|If your personal circumstances differs from the assumptions made, then the calculations may not provide accurate projections.