Welcome

The Retirement Modeller provides you with a snapshot of your financial future by projecting your final super balance and how long it may last in retirement.

Please note that these figures are based on varying assumptions which are subject to change. These figures are only illustrative examples and are not guaranteed. By using this Retirement Modeller you are acknowledging the Disclaimer and Assumptions.

How it works

After providing some basic details about yourself, you are presented with two display options - total income (default) and total balance. Total income shows your annual income in retirement, combining your income from super and the age pension. Total balance shows how long your super may last in retirement.

Interactive sliders let you make changes to various inputs such as investment options, contributions, retirement age, years left in military service and target income. Small changes to these options can make a big difference to your final super benefit. You can also factor in part-time work, transition to retirement and eligibility for the age pension.

The Retirement Modeller is only an example of what your final retirement benefit will look like and does not take into account your particular needs, circumstances and objectives.

By using this Retirement Modeller you are acknowledging the Disclaimer and Assumptions.

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$000,000 Income at retirement
$000,000 Projected balance at retirement
00 Run out age

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$000,000 Income at retirement
$000,000 Projected balance at retirement
00 Run out age
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If your super pension payment is less than the minimum allowed, we have assumed excess drawdown will be invested in super.

Contributions

Please tell us about any additional contributions you make. The sliders are limited by your maximum available contribution.

Investment mix

See how your investment choice can affect your retirement income.

Part time work

Are you planning to work part time?

Transition to retirement

A transition to retirement strategy allows you to draw money from your super while you continue to work. You can top up your super by contributing some or all of your salary providing a tax-effective way of saving for retirement. We'll do these calculations for you to give you an idea of how much you could save.

Age pension

Help us calculate your age pension eligibility. Your age pension payments are automatically included in your retirement income.

Talk to a financial adviser

Personal financial advice is available. Call 1300 277 777 to book an appointment.

Attend an educational workshop

Our free At Work for You educational workshops can help you make informed decisions about your super.

Find out more information

Visit the CSC website to find out more about the superannuation products and services we offer.

Contact us

Call 1300 203 439 or email if you have any questions about your super.

Superannuation Calculator Disclaimer and Assumptions

Disclaimer

The following assumptions are reasonable for the purpose of working out the estimations made by this financial tool.

This tool lets you see the impact of how your choices may affect you over the longer term, and offer you a range of choices of inputs to model some changing scenarios, so that you can see the possible impact which some of your future decisions may have.

The information which this financial calculator provides, however, are illustrations only. It will provide information for you, based upon a limited range of inputs, and the underlying assumptions built into these tools, including inflation, annual investment return, superannuation and tax legislation, all of which change over time.

The results which are provided are not guaranteed, and will need to be reviewed and reassessed by you on an ongoing basis.

Any financial decision which you make should be based upon much more than the information which you receive from this financial calculator which is not to be relied on for the purposes of making a financial decision in relation to a financial product. You should consider obtaining advice from a licensed financial planning professional before making any financial decisions.

The investment returns are illustrative only and should not be taken to provide an estimate of the amount of investment returns you may receive. You should obtain a copy of the ADF Super Product Disclosure Statement and consider its contents before making any decision regarding your super.

Commonwealth Superannuation Corporation (CSC) ABN: 48 882 817 243 AFSL: 238069. RSEL: L0001397 Trustee of the Australian Defence Force Superannuation scheme (ADF Super) ABN: 90302247344 RSE: R1077063.

Assumptions

Inflation

Wage inflation of 3.5% pa has been assumed by default. This rate has also been used when discounting future amounts to current values. This rate can be changed on the 'edit assumptions' tab below.

The default assumption is set at 1% above the mid-point of the Reserve Bank of Australia's 2-3% pa target 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

The user's salary is assumed to increase in line with wage inflation. In any future periods where the user has a period of part-time employment, their salary is reduced pro-rata.

Tax calculations allow for personal income tax rates, the Medicare levy, the low income tax offset and the senior Australian tax offset. Threshold and offset amounts in the first year are based on current rates. Thereafter they are indexed in line with wage inflation.

Employer contributions

The user is assumed to receive superannuation guarantee contributions of 16.4%.

Superannuation guarantee contributions are subject to the maximum contribution base, which is currently $51,620 per quarter for the year ending 30 June 2017. This threshold is indexed annually in line with wage inflation.

Member contributions

Regular concessional or non-concessional contributions entered by the user are assumed to increase in each year in line with the user's salary. In any periods of part-time work, the user's contributions are assumed to decrease pro-rata.

The amount of a one-off non-concessional contribution entered by the user is assumed to be fixed, and is not indexed.

Where a concessional or non-concessional contribution exceeds the corresponding legislated contribution thresholds, the contributions are taxed accordingly. Concessional contributions are taxed at 15% in the superannuation environment. Since 1 July 2013, members are allowed to withdraw any excess concessional contributions made from their account and the excess concessional contributions will be taxed at the individual's marginal tax rate plus an interest charge.

The concessional and non-concessional contribution thresholds are indexed in line with the assumed rate of wage inflation.

Contributions are assumed to be spread evenly across the year.

Co-contribution

In each projection year, the user's eligibility for a Government co-contribution is assessed based on their salary and non-concessional contributions. A co-contribution is made to the superannuation account if applicable.

The co-contribution thresholds and maximum amount are indexed in line with wage inflation.

Investment returns

The calculator assumes the following investment returns for each investment strategy:
Investment
return
Percentage
in shares
Cash2.7%0%
Conservative4.50%15%
Balanced6.00%45%
High Growth7.00%65%

Investment returns (except for Cash) are determined by adding the investment objective for each investment option to CPI, which we have assumed to be 2.5%. For Cash, investment return is expected to be close to that of the Bloomberg Ausbond bank bill index by investing 100% in Cash assets. The assumed investment return for Cash is based on long term expectation of short term interest rates and is higher than current bank bill rates. These returns are assumed to be 'after fees and tax'.

The investment returns are illustrative only and should not be taken to provide an estimate of the amount of investment returns you may receive. Actual earning rates may differ from the assumptions used, particularly over the short-term. The resulting benefit can vary widely depending on the assumptions used.

Investment returns in the superannuation account are assumed to be taxed at the relevant rate (based on the percentage of funds invested in shares, and allowing for dividend imputation and the capital gains tax concession). An allowance of 15% earnings tax has been deducted on all earnings within superannuation. Investment returns in the pension account are assumed to be tax-free.

Investment earnings are assumed to be credited continuously to the fund.

Fees

Fees are assumed to be as follows:

Management cost (% of assets)
Cash0.14%
Conservative0.36%
Balanced0.82%
High Growth0.85%

ADF Super members pay annual administration fees of $60 per annum.

Fees are assumed to be tax-deductible back to the individual members at the time of being deducted.

Fees are assumed to remain constant in percentage terms over the projection period.

Life expectancy

Life expectancies allow for future mortality improvements. They were derived based on the median mortality rate assumptions in the Australian Bureau of Statistics in 'Population Projections 2006-2011'.

Tax based assumptions

This calculator is based on 2016/17 tax rates and contribution caps.

The Current Concessional cap is $30,000pa for people aged under 49 years and $35,000pa for people aged 49 or over on 30 June 2016.

Employer and salary sacrifice contributions are subject to contributions tax at 15%. Note Individuals with income up to or below $37,000 will automatically receive the low income superannuation Contribution which will refund all contributions tax up to a maximum of $500. Individuals with incomes greater than $300,000 will pay contributions tax on concessional contributions at a rate of 30% rather than 15%.

Excess employer and salary sacrifice contributions that breach the user's annual cap are liable for Excess concessional contribution (ECC) charge.

The excess concessional contributions (ECC) charge is applied to concessional contributions in excess of the cap, to recognise that the tax is collected later than normal income tax. The charge is payable on the increase in tax liability in the year a person makes excess concessional contributions.

Contributions above the non-concessional cap are taxed at the highest marginal tax rate if not returned. Alternatively, earnings are taxed at MTR plus an interest penalty.

Income tax payable on the retirement pension has also been ignored. However, depending on your circumstances, a portion of your retirement income may need to be included as assessable income and may be taxed at your marginal tax rate. If this were the case, your after tax retirement income may be less than that shown by the calculator.

This calculator assumes no other taxes on contributions.

Note that you should also consider the tax if you exceed your concessional contribution cap. If you exceed your concessional cap you will be taxed an additional amount, as detailed above on your excess contribution(s) and these contributions will also count towards your non-concessional cap.

Government age pension

Current Age pension thresholds and rates of payment are allowed for, based on the Single/Couple and Homeowner status of the user. Thresholds and rates of payment are indexed in line with CPI.

The age pension is subject to an asset test and an income test.

The asset test is based on the accrued balance of superannuation assets and other assets.

The age pension income test is based on deemed, rather than actual, income on superannuation and other assets.

Transition to retirement

The transition to retirement optimisation: assumes that the user continues working at the same rate; makes additional salary sacrifice contributions and draws a pension such that their net income remains constant; calculates the contribution and drawing level which maximises the benefit within the superannuation environment.

Drawings

The drawings from superannuation in retirement are calculated as: required income less other income (as entered by the user) less any age pension amounts (as calculated by the program).

Minimum drawings

There are statutory minimum superannuation drawings in both the transition to retirement phase and in retirement (once funds have been converted to the pension phase). For the purpose of this projection, this minimum is effectively ignored in the transition to retirement phase, on the basis that any excess drawings could be re-contributed as non-concessional contributions. Minimum drawing requirements are also ignored in the retirement phase. Though the funds would have to be withdrawn from superannuation, if they were not required to be spent to meet the individual's target income, they would still be available, say in a bank account. Seen from the perspective of retirement funding, and without the complication of including an account external to superannuation, it seems better then to ignore the minimum drawing levels.

Other assumptions

The calculator is based on existing legislative arrangements. The figures used are based on varying assumptions which are subject to change and may also be impacted by future changes to legislation.

Edit Assumptions

The wage inflation slider represents changes to the Average Weekly Ordinary Time Earnings (AWOTE) rather than your personal salary expectations.

Edit user defined investment option

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