Account-based pension calculator

Account based pension calculator icon

This calculator is for people less than 2 years away from retirement or in retirement and helps you work out:

  • How long your super pension will last
  • How fees will affect your pension balance
  • How investment returns affect your pension balance

Note: you can find detailed information about this calculator (assumptions & disclaimers) below.

Estimated time: 5 mins
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Calculator disclaimers and assumptions

Disclaimer

  • This is a model, not a prediction.
  • The results from this calculator are based on the limited information that you have provided and assumptions made about the future. The amounts projected are estimates only and are not guaranteed.
  • This calculator cannot predict your final superannuation benefit or level of retirement income with certainty because this will depend on your personal circumstances, unexpected life events, the age pension paid, investment earnings, tax and inflation.
  • This calculator assumes that all assumptions remain steady and predictable over time. These assumptions are essential so the calculator can show the effect of things you may be able to control, such as choosing a different investment option.
  • Consider updating the projections provided by this model regularly, particularly if your circumstances have changed.
  • Some of the assumptions can be changed to reflect your personal circumstances.
  • Do not rely solely on this calculator to make decisions about your retirement. There may be other factors to take into account. Consider your own needs, financial situation and investment objectives. You may wish to get advice from a licensed financial adviser.

Assumptions

For accumulation funds only

  • The calculator works for accumulation funds only. It will not work for defined benefit funds.
  • We assume your account balance will receive all income and outgoings mid-year.

Results are in today's dollars

  • Results are shown in today's dollars, which means they are adjusted for inflation.
  • We make the following default assumptions about inflation (which you can change under the Advanced Settings - Other section of the calculator):
    • 2.0% each year due to the rising cost of living (CPI inflation)
    • A further 1.0% each year due to the cost of rising community living standards

Transfer Balance Cap

  • From 1 July 2017 there is a cap on the amount of superannuation eligible to be transferred to account based pensions in retirement. This Transfer Balance Cap of $1,600,000 at 1 July 2017 is indexed with inflation over time and increases in increments of $100,000.
  • The calculator does not allow for balances in excess of the Transfer Balance Cap.

Drawdowns in Retirement

  • It is assumed you have retired on or after the relevant preservation age.
  • The calculator determines the drawdowns from your account based pension required to achieve a steady income in retirement.
  • The calculator applies the minimum drawdown rules annually to your drawdowns from your account based pension each year which may result in a higher income being paid to you in some years.

Retirement income

  • The calculator assumes determines the retirement income such that your account-based pension account will last until the 1 July after you reach the age your super is set to run out.  You can select the age you want your super to run out in 'Advanced settings - Other'.
  • Only your retirement income from your account-based pension is included in projected results. Income from the government age pension or any other investments is not included.

Results are shown at 1 July

  • Your projected account based pension balance is shown at 1 July after you reach the age indicated on the chart.
  • Your projected income results are shown for the financial year beginning on 1 July after you reach the age indicated on the chart. For example the super balance shown for age 65 is the balance at 1 July after your 65th birthday. 

Investment options and returns

We make the following assumptions about investment options and returns:

Investment option What it means Assumed investment return (before tax and fees)*

Cash

100% in deposits with Australian deposit-taking institutions

2.6%

Conservative

Around 30% in shares and property. The rest in cash or fixed interest

3.8%

Moderate

Around 50% in shares and property. The rest in cash or fixed interest

4.4%

Balanced

Around 70% in shares and property. The rest in cash or fixed interest

4.8%

Growth

Around 85% in shares and property. The rest in cash or fixed interest

5.0%

High growth

Around 100% in shares and property

5.2%

* These assumed default investment returns and tax rates are based on actuarial advice received in May 2015.

Actual returns will vary significantly from year to year and could be negative in some years, particularly for investment mixes where more is invested in shares and property. This calculator does not allow for such variations. You can vary assumptions in 'Advanced settings'.

There is a lot to consider when comparing investment options between funds. Risk and return objectives and asset allocation within investment options may differ between funds and should be taken into account when comparing funds.

Tax

  • We assume that you have provided your Tax File Number to your superannuation fund.
  • No allowance is made for any other tax. In particular, if you receive a benefit amount before age 60 no allowance is made for any income tax payable.

Administration fees

  • We assume the dollar per annum administration fees are charged mid-year on average and will increase with inflation each year and that the administration fees charged as a % of your balance are charged mid-year on average.
  • We assume that these fees are tax deductible within super.

Investment fees

  • These fees represent costs relating to the management of your investments and are directly deducted from your account.
  • We assume that the investment fees charged as a % of your balance are charged mid-year on average.
  • We assume that these fees are tax deductible within super.

Indirect cost ratio / indirect costs

  • These costs represent costs that are deducted from investment returns before returns are credited to your account.
  • We assume that the indirect costs are charged as a % of your balance are charged mid-year on average.
  • We assume that these fees are tax deductible within super and that tax deductions are credited before deducting these fees from the returns that are applied to your account.

Adviser service fees

  • In 'Advanced settings' you can enter the adviser service fees that you are charged.
  • We assume the dollar per annum adviser fees are charged mid-year on average and will increase with inflation each year and that the adviser fees charged as a % of your balance are charged mid-year on average.
  • We assume that these fees are tax deductible within super.

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Last updated: 06 Dec 2017