Welcome

The PSSap Retirement Modeller projects how long your super might last in retirement.

How it works

After providing some basic details about yourself, you are presented with two display options - Income and Balance. Income shows your annual income in retirement, combining your income from super with the age pension. Balance shows how long your super balance will last in retirement.

Interactive sliders let you make changes to various inputs such as investment options, contributions, retirement age 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.

$000,000 Income at retirement
$000,000 Projected balance at retirement
00 Run out age

Rotate your device to see the graphs

$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.

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 a financial adviser

Personal financial advice is available through our partner, Industry Fund Services. 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

Download a Product Disclosure Statement or visit the PSSap website to find out more about your PSSap super benefit.

Member Services Online allows you to make personal (after tax) contributions, check your balance and transaction history, change your investment options, view your nominated beneficiaries, and update your contact details.

Contact us

Call 1300 725 171 or contact us if you have any questions about your super.

Superannuation calculator assumptions

Disclaimer

The information generated by the PSSap Retirement Modeller is general advice only and has been prepared without taking account of your personal objectives, financial situation or needs.

Before acting on any such general advice, you should consider the appropriateness of the advice, having regard to your own objectives, financial situation or needs. You may wish to consult a licensed financial advisor. You should obtain a copy of the PSSap Product Disclosure Statement and consider its contents before making any decision regarding your super.

Commonwealth Superannuation Corporation (CSC) ABN: 48 882 817 243 AFSL: 238069. RSEL: L0001397 Trustee of the Public Sector Superannuation accumulation plan (PSSap) ABN: 65 127 917 725 RSE: R1004601.

Assumptions

Assumptions are current for the 2015-16 financial year.

Inflation

Wage inflation of 3.5% pa has been assumed by default. This rate has also been used when discounting future amounts to current values. This rate can be changed on the 'edit assumptions' tab below.

The default assumption is set at 1% above the mid-point of the Reserve Bank of Australia's 2-3% pa target for price inflation. This is consistent with the average historic difference between wage and price inflation in Australia over the last 30 years as measured by increases in Average Weekly Ordinary Time Earnings and the Consumer Price index respectively.

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, 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 user is assumed to receive superannuation guarantee contributions of 15.4%.

Superannuation guarantee contributions are subject to the maximum contribution base, which is currently $51,620 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 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.

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. From 1 July 2013, members are allowed to withdraw any excess concessional contributions made from their account and the excess concessional contributions will be taxed at the individual's marginal tax rate plus an interest charge.

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 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 calculator assumes the following investment returns for each investment strategy:

Investment
return
Percentage
in shares
Cash3.55%0%
Income Focused4.50%20%
MySuper Balanced6.00%62%
Aggressive7.00%71%

Investment returns (except for Cash) are determined by adding the investment objective for each investment option to CPI, which we have assumed to be 3.5%. For Cash, investment return is expected to be close to that of the UBS Australia bank bill index by investing 100% in Cash assets. The assumed investment return for Cash is based on long term expectation of short term interest rates and is higher than current bank bill rates. These returns are assumed to be 'after fees and tax'.

The investment returns 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 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). Investment returns in the pension account are assumed to be tax-free.

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

Fees

Fees are assumed to be as follows:

Management cost (% of assets)
Cash0.14%
Income Focused0.36%
MySuper Balanced0.82%
Aggressive0.85%

PSSap members pay annual administration fees of $60 per annum. An Insurance fee applies to members who have insurance cover ($18 per annum). Insurance Premiums are not included.

Fees are assumed to be tax-deductible back to the individual members at the time of being deducted.

Fees are assumed to remain constant in percentage terms over the projection period.

The Australian government's Stronger Super reforms require trustees of all super funds to establish and maintain an operational risk reserve from 1 July 2013. Based on current funds held within PSSap, from 1 July 2013 an amount of approximately 0.14% pa will be accrued from unit prices of the PSSap investment options. This will result in a minor impact on the unit prices and investment earnings of investment options. The operational risk reserve has not been taken into account in this modeller's projections.

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'.

Government age pension

Current Age pension thresholds and rates of payment are allowed for, based on the Single/Couple and Homeowner status of the user. Thresholds and rates of payment are indexed in line with CPI.

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 this projection, 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

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

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