Disclaimer
This calculator and information has been prepared by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003 (Rest).
The Superannuation calculator is an education tool intended to provide you with an estimate of how much superannuation you could have in retirement and how long it may last. It has been designed to assist you in assessing the effect your contributions and investment choices may have on your retirement outcome.
This is not a recommendation, and the results are not intended to be an exact figure or a guarantee. The results provided by the calculator are estimates only, actual outcomes depend on many uncertain factors such as investment returns and relevant legislation.
The calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. You should consider your own needs, financial situation and investment objectives. We recommend you seek advice from a licensed financial adviser before making any financial decisions.
The results are expressed in today's dollars by discounting with wage inflation in the accumulation phase and consumer price inflation in the pension phase. This is done to provide you with more meaningful figures.
This calculator does not save any of the data you have entered. If you wish to keep a copy for your records you can take a print screen or print a copy of the page.
Limitations
The results from this calculator are based on the limited information that you have provided and the assumptions made. It does not take into consideration all of your objectives, financial situation, needs and other unpredictable events/factors, which may impact on your retirement outcomes. There are limitations to the calculator, which include:
- the current balance for superannuation is capped at $1,000,000.
- only one target income value in retirement can be selected and this amount will be indexed each year. In reality, your actual cost of living may vary year to year.
- the amount of super guarantee contributions (mandatory employer contributions) is fixed in this calculator, therefore this calculator is not suitable for you if you:
- are self-employed,
- receive more than the minimum superannuation guarantee contributions,
- aren’t eligible for super guarantee contributions, or
- belong to a defined benefit scheme.
- the calculator does not use the ‘carry forward’ rules, which allow some people to make extra concessional contributions above the general concessional contributions cap - without having to pay extra tax.
- the calculator cannot consider an insurance premium within superannuation of more than $500 per annum. If your premium is higher than this amount, this calculator will not be appropriate for you.
Assumptions
There are some assumptions in the calculator that you are able to change under Disclaimer and Assumptions and then selecting Edit Assumptions. Any changes you make to these assumptions will impact the results.
Rest believe that the assumptions made in this calculator are reasonable for the purpose of working out the estimate. A team of qualified financial services professionals have determined the assumptions used in this calculator by relying on the assumptions set out in the relevant legislation, regulatory guidance provided by the Australian Securities & Investments Commission (ASIC), industry standards and internal and external product/economic/market data.
Whilst Rest believes the assumptions are reasonable, you should consider your own needs, financial situation and investment objectives in light of these assumptions, as it might not necessarily be appropriate for you. We recommend you seek advice from a licensed financial adviser before making any financial decisions.
Legislative assumptions
A number of assumptions in this calculator are prescribed by legislation including superannuation and taxation legislation. Where there is relevant legislation, the assumptions made in this calculator reflect legislation as at 20 September 2024.
Future legislative changes can affect the result. Changes are made as soon as practicable after they are finalised, but there may be a lag. In this case, the results should not be relied upon.
Inflation
By default, the projection applies future wage inflation of 3.7% per annum (p.a.) and future price inflation of 2.5% p.a.
Target retirement income is assumed to increase at future price inflation of 2.5% p.a.
These assumed inflation rates and the approach to discounting are consistent with ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603.
Personal income
Your salary is assumed to increase in line with wage inflation. In any future periods where there is a period of part-time employment, your salary will be prorated.
Tax calculations allow for Personal Income Tax rates, the Medicare Levy, the Low Income Tax Offset and the Senior Australian Tax Offset. It does not take into account the Medicare surcharge or any HECS/HELP debt. Threshold and Offset amounts in the first year are based on rates effective 1 July 2024, so are indexed in line with wage inflation.
Employer contributions
It is assumed you will receive the minimum legal superannuation guarantee contributions. The rates applied in this calculation, as specified by the Australian Taxation Office (ATO) are as follows:
| 01/07/2024 | 11.50% |
| 01/07/2025 and onwards | 12.00% |
Superannuation guarantee contributions are subject to the maximum super contribution base, which is $65,070 per quarter for 2024-2025. This threshold is indexed annually in line with wage inflation.
Member contributions
The calculator allows you to make regular or one-off contributions until your retirement age.
Regular concessional (before tax) or non-concessional (after tax) contributions are assumed to increase each year in line with salary. In any periods of part-time work, your contributions will be prorated. Concessional contributions are assumed to be spread evenly across the year.
The one-off contribution is treated as a non-concessional contribution, fixed and not indexed. You are only able to make one, one-off non-concessional contribution in this calculator. Instead of making a non-concessional contribution, you are able to make an equivalent concessional contribution. For some people, this would increase the benefit of savings due to the lower tax payable on concessional contributions compared to their salary.
Concessional contributions up to the concessional contributions cap are generally taxed at 15% in the superannuation environment. Non-concessional contributions up to the non-concessional contributions cap are not subject to contribution tax in the superannuation environment. Where a concessional or non-concessional contribution exceeds the corresponding legislated contribution limit, the contributions are subject to additional tax levied in the personal income tax environment.
For the 2024-2025 financial year the general concessional cap is $30,000.
Note, to the extent that the combined amount of your income and concessional contributions for a particular financial year exceeds $250,000, concessional contributions are assumed to be subject to tax at 30% in the superannuation environment.
For the 2024-2025 financial year the non-concessional cap is 4 times the general concessional cap, being $120,000. This can be increased by up to $360,000 under the 'bring-forward' rules. The additional amount which can be contributed depends on your account balance and your age:
- If your balance is under $1.66m you are able to 'bring-forward' this and the next two years of contributions, and so can contribute $360,000.
- If your balance is between $1.66m and $1.78m you are able to 'bring-forward' this and the following year of contributions, and so can contribute $240,000.
- If your balance is between $1.78m and $1.9m you are not able to bring forward any future year’s contributions, your non-concessional contribution cap is equal to the annual cap of $120,000.
- If your balance is over $1.9m (or if you are 75 years old or older) your non-concessional contributions cap is $0.
The non-concessional cap under these 'bring-forward' arrangements also represents the total amount of eligible non-concessional contributions within the bring-forward period.
If in any year the combination of the contributions would exceed the relevant non-concessional contribution cap, the calculator will limit the contributions to the cap amount; if this occurs you will receive a message and the calculator may not be suitable for your needs.
The concessional and non-concessional contribution limits are indexed in line with wage inflation.
Government co-contribution
Each year, your eligibility for a government co-contribution is assessed based on your salary and non-concessional contributions. The calculator does not take into account any reportable fringe benefits that may affect your eligibility for a co-contribution. A co-contribution of up to $500 is made to the superannuation account if you make non-concessional contributions and your salary is below the lower income threshold and is pro-rated if your salary is between the lower income threshold and the upper income threshold.
The co-contribution income thresholds are indexed in accordance with wage inflation. For the current co-contribution income thresholds, visit the ATO.
Investment earnings
Based on the investment mix you selected, your superannuation and pension accounts are assumed to earn the same investment returns per annum. In reality, your actual investment returns will vary from year to year, and this will affect your retirement outcome.
Earnings 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, if applicable). Earnings in the pension account are assumed to be tax-free. Investment earnings are assumed to be credited continuously to the fund.
Please see below for the assumed investment returns:
| Accumulation phase return (after tax) | Pension phase return (before tax) |
|---|
| Low | 2.5% | 2.94% |
| Moderate | 4.5% | 4.89% |
| High | 6.5% | 6.81% |
This calculator provides default investment mixes, which may not reflect the way you are currently invested in superannuation. We have provided three default investment mixes to cater for different types of investment risk and return, each will impact your results. The above returns are associated with medium to long term projections (net of the investment fees) of selected Rest investment options which have a low, moderate and high investment risk.
Performance is not guaranteed.
Fees and insurance premiums
Fees are based on the Rest Super product and are assumed to be as follows:
| Administration fee (per annum) | $78 |
| Administration fee (% of account balance at the end of the month)^ | 0.10% pa |
| Contribution fee (% of contribution) | 0.00% |
| Insurance premiums (per annum) | $0.00 |
^ Administration % fee capped at $600 per annum (effective for Rest Super product as of 30 November 2024)
| Investment fee* (% of assets) |
| Low | 0.05% |
| Moderate | 0.62% |
| High | 0.69% |
* The investment fees (including performance-related fees) listed above shows estimates of these fees and costs based on information for the 12 months ending 30 June 2024 for the selected Rest investment options.
Dollar fees are assumed to increase in line with the assumed level of wage inflation. Other fees are assumed to remain constant in percentage terms over the projection period.
From July 2019, the Protecting Your Super legislation introduced a 3% fee cap for super balances of less than $6,000. This is ignored for the purposes of this calculator.
Retirement age
If you enter a current age less than 67, the default retirement age is 67. If you enter a current age of 67 or older, the default retirement age is your age at your next birthday. This approach is consistent with ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603.
Life expectancy
The purpose of the life expectancy indicator in the calculator is to show you the life expectancy compared to when your retirement funds is projected to run out. This information has been derived from the average of the male and female medium mortality rate assumptions in the Australian Bureau of Statistics in 'Population Projections, Australia, 2022 to 2071'.
This information does not impact the calculations or results.
Transition to Retirement (TTR)
The calculator assumes you do not have a TTR strategy in place, unless you select otherwise. It allows for Transition to Retirement optimisation which assumes that you continue working, make additional salary sacrifice contributions and draw a pension so that your net income remains constant. It calculates the contribution and drawdown level which maximises the benefit within the superannuation environment.
Age pension
The age pension thresholds and rates of payment allowed for are based on your Single/Couple and Homeowner status. If you select Couple, it is assumed that your partner has combined their income and assets with you. The age pension means test thresholds will increase in line with consumer price inflation and the payment rates will increase in line with wage inflation. It is assumed you meet the qualification requirements for the age pension under the social security legislation, unless the data you have entered indicates otherwise.
The age pension is subject to an asset test and an income test. The assets outside super you enter will be used for the age pension asset test. The calculator assumes that in retirement phase, funds are placed in an account-based pension. The age pension income test is therefore calculated on the basis of deemed income on the account-based pension and assets outside super.
Additional income (e.g. additional investment/rental income in retirement) that you are receiving can be entered into the calculator, this will be included in your projected income, however will not be included when calculating the income test for Age pension.
The assets outside super and additional income are assumed to increase each year at the same rate as the assumed wage inflation.
The Services Australia rate estimator lets you estimate your payment rate of age pension, based on your current or proposed circumstances. It does not work out if you will be eligible for a payment. To use the rate estimator, go to humanservices.gov.au/estimators and use the payment and service finder.
Note: The Age Pension rates are indexed twice a year in March and September to reflect the changes in the cost of living for pensioners and wage increases. Changes are made as soon as practicable after they are finalised, but there may be a lag. In this case, the results should not be relied upon.
Transfer balance cap
The transfer balance cap restricts the amount that can be transferred into an account-based pension at pension phase. At 1 July 2024, the cap is $1.9m and will increase in $100,000 increments in line with price inflation. If at the time of retirement your projected account balance exceeds the (indexed) transfer balance cap, the maximum possible amount will be transferred into an account-based pension and any excess balance will be retained in an accumulation account.
Drawdowns
The drawdowns from superannuation in retirement are calculated as required income less other income (as entered by you) less any age pension amounts (as calculated by the calculator).
Where the transfer balance cap is exceeded at the time of retirement, you will have both an accumulation account and a pension account in retirement. The minimum required amount will be drawn from the pension account and any further income required to attain your target income will be drawn from your accumulation account.
Minimum drawdowns
There are statutory minimum superannuation drawdowns in retirement (once funds have been converted to the pension phase). There are statutory requirements which require you to withdraw a minimum amount of superannuation each year. This minimum amount is calculated based on your account balance and a percentage factor, which varies by age. The calculator allows for these minimum withdrawal requirements.
Getting help
If you would like to seek factual information or general advice about your Rest account, contact Rest Member Connections on 1300 235 049.
If you would like to receive financial advice that that been tailored to your circumstances, please book an appointment with a Rest Adviser*.
Other online calculators which you may find helpful can be found on Rest’s Tools and Resources page or the MoneySmart website.
* Rest Advice is provided by Link Advice Pty Ltd ABN 36 105 811 836, AFSL 258145 (Link). Rest Advisers are employees of Rest and authorised representatives of Link.
Last updated: 30 September 2024
