Methodology & Assumptions

1. Regulatory Framework

This calculator is designed to comply with the following ASIC instruments and guidance:

• ASIC (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 — the primary regulatory instrument for superannuation calculators from 1 January 2023.
• Regulatory Guide 276 (RG 276) — “Superannuation forecasts: Calculators and retirement estimates” (updated September 2024).

Under ASIC’s relief framework, a superannuation calculator may be provided by any person without an Australian Financial Services Licence (AFSL), provided it offers general information only and does not access member data or promote specific funds.

This calculator provides general information only. It does not access your super fund data, does not recommend specific funds or products, and does not constitute personal financial advice.

2. “Today’s Dollars” — How We Adjust for Inflation

ASIC requires that superannuation projections be presented in “today’s dollars” — meaning we deflate future values to show their purchasing power in current terms. We use ASIC’s prescribed two-stage deflator:

Both rates are ASIC default assumptions effective from 1 January 2025 under Instrument 2022/603.

3. Default Assumptions

All default values can be overridden in the calculator’s Advanced Assumptions section. The defaults below are sourced from ASIC, the ATO, MoneySmart, and APRA data:

4. Accumulation Phase — How We Project Your Balance

We simulate your super balance year-by-year from your current age to your retirement age. Each year the model:

1. Grows your salary by the wage growth rate (default 3.7% p.a.)
2. Calculates employer SG contributions (12% of ordinary time earnings, capped at the maximum contribution base)
3. Adds any salary sacrifice and after-tax voluntary contributions, applying the 15% contributions tax to concessional amounts
4. Deducts annual fees (fixed admin fee + percentage-based admin and investment fees) and insurance premiums
5. Applies investment returns net of the effective earnings tax rate (~7% of gross)
6. Deflates the nominal balance to today’s dollars using the wage inflation rate

5. Retirement Income Estimates

We offer two retirement income methods:

6. ASFA Retirement Standard Benchmarks

The “on-track” score compares your projected retirement balance against the Association of Superannuation Funds of Australia (ASFA) Retirement Standard lump-sum targets. ASFA publishes quarterly benchmarks for four scenarios:

• Single — Modest lifestyle
• Single — Comfortable lifestyle
• Couple — Modest lifestyle
• Couple — Comfortable lifestyle

ASFA benchmarks assume retirees own their home outright, are relatively healthy, and are aged 65–84. If you rent or have a mortgage in retirement, your actual needs may be higher.

7. Age Pension Estimates

When enabled, the calculator applies a simplified Age Pension means test using current Services Australia rates and thresholds. The model applies both the income test (using deeming rates) and the assets test, then uses the test that results in the lower pension — as required by legislation.

This is a simplified estimate. Actual Age Pension eligibility depends on many factors not captured here, including assets outside superannuation, your partner’s income and assets, overseas residency, and more. For a definitive assessment, contact Services Australia or use their online estimator.

8. Known Limitations

To keep the calculator accessible and fast, we make the following simplifications:

• Single investment option: The model assumes a balanced/growth portfolio with a single return rate. It does not model switching between investment options or life-cycle strategies.
• No career breaks: Salary is assumed to grow continuously. Career breaks, parental leave, and periods of unemployment are not modelled.
• No partner modelling: The calculator projects one person’s super. Couple scenarios use ASFA couple benchmarks but do not model two separate balances.
• Simplified Age Pension: The model uses a point-in-time means test at retirement. It does not model changing pension entitlements as super is drawn down over time.
• No Transition to Retirement (TTR): TTR income streams are not currently modelled.
• Static rates: All rates (returns, fees, inflation, tax) are held constant over the projection. Real-world rates fluctuate.

9. Data Sources

All rates and thresholds are sourced from official publications:

• Australian Taxation Office (ATO) — SG rates, contribution caps, tax rates, Division 293 thresholds, maximum contribution base
• ASIC / MoneySmart — default return assumptions, fee benchmarks, regulatory instruments (2022/603, RG 276)
• ASFA — Retirement Standard lump-sum and income benchmarks (updated quarterly)
• Services Australia — Age Pension rates, income and assets test thresholds, deeming rates
• APRA — industry-average fee data used for default assumptions

10. Client-Side Processing

All calculations run entirely in your browser. No personal data — salary, super balance, age, contributions — is transmitted to our servers at any point. You can verify this by inspecting network requests in your browser’s developer tools.

11. Questions or Corrections

If you believe any rate, threshold, or calculation is incorrect, please contact us at contact@superannuationcalc.com.au. We take accuracy seriously and will investigate promptly.