The modeller is not a recommendation and is not intended to be an exact figure. It is intended to assist you in assessing the effects your contributions and investment choices may have on your retirement outcome. The estimate may change in the future as it does not take into account any changes in the cost of living between the time of the preparation of the estimate and the future time or future changes to laws after the date of preparation of these assumptions. Do not rely on this calculator to make decisions about your retirement. You should consider your own needs, financial situation and investment objectives and may wish to get advice from a licensed financial adviser before making any financial decisions.
Once you become eligible for a superannuation entitlement, your benefit entitlement will be calculated using the latest unit price in accordance with the rules of the scheme.
The superannuation products administered by Super SA are exempt public sector superannuation schemes and are not regulated by the Australian Securities and Investments Commission or the Australian Prudential Regulation Authority. Super SA is not required to hold an Australian Financial Services licence to provide general advice about its superannuation products.
Inflation
The projection allows for future wage inflation of 3.7% 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.
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. 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 current rates. Thereafter they are indexed in line with wage inflation.
Employer contributions
The user is assumed to receive superannuation guarantee contributions. The assumed rates of contribution are:
| 01/07/2024 | 11.50% |
| 01/07/2025 and onwards | 12.00% |
Member contributions
Regular concessional (before tax) or non-concessional (after tax) 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. Concessional contributions are assumed to be spread evenly across the year.
The amount of a one-off non-concessional contribution entered by the user is assumed to be fixed, and is not indexed.
For the 2024-2025 financial year the general concessional cap is $30,000 for Super SA Select. Triple S does not have an annual concession cap, rather than concessional contributions being subject to an annual cap triple s members are subject to a lifetime cap ($1.78 million – for the 2024-2025 financial year) for their untaxed element in Triple S. However, if you exceed your untaxed plan cap then 47% tax (including 2% Medicare Levy) will be deducted.
Concessional contributions up to the concessional contributions cap are generally taxed at 15% for Super SA Select, however Triple S is untaxed and taxed at exit. Non-concessional contributions up to the non-concessional contributions cap are not subject to tax on contribution to 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.
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% for Super SA Select and 15% for Triple S to account for Division 293 tax on contribution to 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.
The calculator enables you to enter both regular annual non-concessional contributions and a one-off lump sum non-concessional contribution. If in any year the combination of these 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.
The concessional and non-concessional contribution limits are indexed in line with AWOTE.
Co-contribution
In each projection year, the user's eligibility for a Government co-contribution is assessed based on their salary (note, the calculator does not take into account any reportable fringe benefits that may affect your eligibility for a co-contribution) and non-concessional contributions. 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 Australian Tax Office (ATO) at www.ato.gov.au/rates
Investment earnings
Based on the investment mix selected, the member's superannuation and pension accounts are assumed to earn anticipated investment returns of between 2.7% and 5.3% per annum before fees and tax( Note that triple s is tax deferred, so is taxed at 15% when exiting the scheme). Past performance is not an indicator of future performance. 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.
| Untaxed return | Taxed return |
|---|
| Cash | 2.70% | 2.30% |
| Defensive | 3.80% | 3.40% |
| Conservative/Stable | 4.40% | 4.03% |
| Moderate | 4.80% | 4.49% |
| Balanced | 5.00% | 4.71% |
| High Growth | 5.30% | 5.08% |
Note: Untaxed investment return will apply for Triple S members for both accumulation and retirement phase (drawdown period). For Super SA Select members taxed return will apply during accumulation phase while untaxed return applies once they retires.
Fees and insurance premiums
Fees are based on fees for the Super SA Super product and are assumed to be as follows:
| Administration fee (per annum) | $70.20 |
| Administration fee (% of account balance at the end of the month)^ | 0.05% pa |
| Contribution fee (% of contribution) | 0.00% |
| Insurance premiums (per annum) | $300.00 |
| Adviser service fee (% of assets) | 0.00% |
^ Administration % fee capped at $325
* 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
Fees are assumed to be tax-deductible in the fund. For more information about fees please refer to the relevant Product Disclosure Statement at https://www.supersa.sa.gov.au/
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
Life expectancies allow for future mortality improvements. They were derived based on the medium mortality rate assumptions in the Australian Bureau of Statistics in 'Population Projections, Australia, 2006 to 2101'.
Age pension
Current age pension thresholds and rates of payment are allowed for, based on the Single/Couple and Homeowner status of the user. If couple is selected it is assumed that your partner has combined income and assets with you. Thresholds and rates of payment are indexed in line with wage inflation. It is assumed you meet the qualification requirements for the age pension under the social security legislation.
The age pension is subject to an asset test and an income test. The user enters their Assets outside super which is used for the Age pension asset test. The projection assumes that in retirement 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. 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
Transfer balance cap
The transfer balance cap restricts the amount that can be transferred into an account-based pension. 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.
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).
Where the transfer balance cap is exceeded at the time of retirement, in retirement you will have both an accumulation account and a pension account. 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 their accumulation account.
Minimum drawings
There are statutory minimum superannuation drawings in retirement (once funds have been converted to the pension phase).These statutory requirements 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
Online calculators let you explore your potential retirement income in more detail. They let you personalise the estimate, and show you how you can improve your retirement income. Don’t make any changes to your retirement savings arrangements based on this estimate. Before you make changes, you should get further information or advice.
Transition to Retirement (TTR)
Transition to retirement optimisation: This assumes that the user continues working, makes additional salary sacrifice contributions and draws a pension such that their net income remains constant. It calculates the contribution and drawing level which maximises the benefit within the superannuation environment.
Last updated: September 2024
