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.
The after-tax contributions you've entered would result in you exceeding your after-tax contributions cap. The calculator has capped contribution amounts keep you within these limits.

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 an authorised financial planner

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 contact us if you have any questions about your super.

Superannuation Calculator Disclaimer and Assumptions

Disclaimer

The Retirement Modeller is provided by Commonwealth Superannuation Corporation (CSC) ABN: 48 882 817 243 AFSL: 238069. RSEL: L0001397.

The Retirement Modeller projects how long your superannuation might last in retirement, based on the information that you provide and the stated assumptions. Changes to any of the assumptions, or the information that you provide, may have a significant effect on your projected outcomes. The results generated by the Retirement Modeller are estimates only and are not guaranteed. Your actual retirement income and superannuation balance in retirement, and the duration for which your superannuation will actually last in retirement, will depend on a range of factors, including your personal circumstances and external factors. You should consider regularly updating the projections provided by Retirement Modeller as those factors may change.

The Retirement Modeller is not intended to be relied on for the purposes of making a decision in relation to a financial product or your finances. In making any decisions about your superannuation or your retirement you should consider your own objectives, financial situation and needs, and you should not rely solely on the Retirement Modeller. You should consider getting advice from a licensed financial advisor before making any financial decisions.

Assumptions

The projections calculated by Retirement Modeller are based on the assumptions described below.

The default assumptions are current for the 2022-23 financial year and are based on relevant legislation (including tax and superannuation legislation) applicable for that financial year. You can change certain assumptions that are applied by the Retirement Modeller on the ‘Edit assumptions’ tab.

The Retirement Modeller projects how long your superannuation might last for accumulation products only. It will not make projections for defined benefit funds.

Today’s dollars

The income and superannuation balance amounts at retirement that are projected by Retirement Modeller are shown in today’s dollars, which means that they are adjusted for inflation.

The projection allows for future wage inflation of 4.0% pa and future price inflation of 2.5% pa.

Results are expressed in today's dollars by discounting with wage inflation in the accumulation phase and price inflation in the pension phase.

Target income is also assumed to increase at this rate.

These assumed inflation rates and the approach to discounting are consistent with ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603.

The rate of inflation that is assumed for this purpose can be changed on the ‘Edit assumptions’ tab.

Personal income

The user's salary is assumed to increase in line with wage inflation. For this purpose, a wage inflation rate of 4.0% pa has been assumed by default. This rate can be changed on the 'Edit assumptions' tab.

The default assumed rate of wage inflation is set at 1.5% above the assumed price inflation rate of 2.5% pa. This is adopted from the default inflation rate set out in ASIC’s regulatory guide for superannuation calculators. This is also consistent with the average historic difference between wage and price inflation in Australia over the last 35 years as measured by increases in Average Weekly Ordinary Time Earnings and the Consumer Price Index respectively

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, the debt levy 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 default rate that is assumed for the purpose of calculating superannuation contributions is 16.4%. Under the current ADF Super rules, this is the percentage of a member’s superannuation salary that ADF must contribute, subject to superannuation law.

Superannuation guarantee contributions are assumed to be 10.5% increasing to 12% by 2025/26 in accordance with the Superannuation Guarantee (Administration) Act 1992.

Superannuation guarantee contributions are subject to the maximum superannuation contribution base, which is currently $60,220 per quarter. 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 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. Concessional contributions in excess of the contribution threshold are subject to additional tax. This is levied in the income tax environment, and so has no impact on the estimates in this calculator; however it would increase the amount of income tax you would have to pay.

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, total superannuation balance 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 Retirement Modeller assumes the following default investment returns (after fees and tax) for each investment strategy:

Investment option

Assumed investment return per annum (after fees and tax)

Cash

2.2%

Conservative

4.0%

Balanced

6.0%

High Growth

6.5%

These default investment returns (except for Cash) have been determined by adding the investment objective for each corresponding investment option in the ADF Super (Income Focused, MySuper Balanced and Aggressive) 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 default assumed investment return for Cash is based on long term expectation of short term interest rates and is higher than current bank bill rates.

The assumed investment returns for each investment option can be changed on the ‘Edit assumptions’ tab.

The default investment returns assumed by the Retirement Modeller are illustrative only and should not be taken to provide an estimate of the amount of investment returns you may receive.

Investment returns in the superannuation and Transition to Retirement accounts 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). Investment returns in the pension account are assumed to be tax-free.

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

Fees

The following default investment fees and costs and transaction costs are assumed for each investment option:

Investment option

Investment fees and costs (% per annum of average net assets)

Transaction costs

Cash

0.07%

0.00%

Conservative

0.50%

0.12%

Balanced

0.77%

0.11%

High Growth

0.79%

0.12%


The investment fees and costs and transaction costs for an investment option are the ratio of the total costs for that investment option to the total average net assets attributed to that investment option.

The investment returns in the previous table represent returns after the deduction of these fees.

It is assumed that members pay default annual administration fees and costs of $84 per annum.

Fees are assumed to:

  • be tax-deductible back to the individual members at the time of being deducted; and
  • remain constant in percentage terms over the projection period.

The default investment fees and costs, transaction costs, and administration fees and costs assumed by the Retirement Modeller reflect the corresponding fees charged in ADF Super. Annual administration fees and costs, percentage administration fees and costs and contribution fees can be changed on the ‘Edit assumptions tab’.

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

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 2022/23 tax rates and contribution caps and assumes that you have provided your Tax File Number to the superannuation fund.

The current concessional cap is $27,500 p.a.

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 tax offset which will refund all contributions tax up to a maximum of $500. Individuals with incomes greater than $250,000 will pay contributions tax on concessional contributions at a rate of 30% rather than 15%.

Contributions above the non-concessional cap are taxed at the highest marginal tax rate.

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 contributions 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 marital status and the home owner status of the user. The age pension thresholds are indexed in line with CPI and rates of payment are indexed in line with wage inflation. The assumed rate of CPI is 2.5% p.a. and the assumed rate of wage inflation is 4.0% p.a. These rates can be changed on the ‘Edit assumptions’ tab.

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 the Retirement Modeller’s projections, 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.

Edit assumptions

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

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Edit user defined investment option

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