Insights
Savings Calculator Assumptions
In greater detail.
Our savings calculator lets you see how different contributions and other inputs could affect your retirement savings. The calculator uses the following assumptions in estimating these outcomes:
Your pay will increase by 3.5% each year. Your one-off payments will increase in line with your pay (these are the one-off payments that you may make annually in addition to contributions automatically deducted from your pay). For example, a $1,000 annual contribution today will be a $1,035 annual contribution next year, a $1,070 annual contribution the year after and so on.
If you make voluntary contributions (either a regular top up, or a one-off payment) you will continue making these each year until you reach 65.
The calculator assumes that your regular top up contribution amount increases each year with inflation. Inflation assumption is 2%.
No amounts are withdrawn for home purchase, financial hardship or other reasons.
You take no savings suspensions – where you stop contributions for a period of time.
The Government contribution you earned in the past year (the current statement period) will continue to be paid each year until you reach age 65. For example, if you qualified for the full Government contribution of $260.72, the estimate will include this for every year. If you only qualified for a portion of the contribution, that same portion will be applied every year.
You stay in the same fund or fund mix until you are 65.
The annual rate of return is based on your fund type:
- Conservative Fund: 2.5%
- Balanced Fund: 3.5%
- Growth Fund: 4.5%
- High Growth Fund: 5.5%
The rates of return are:
- After tax of 28%. This is the highest and most common
- After fees. The fees used are an average for your fund type and don’t reflect the actual fees you paid
The inflation assumption is currently 2% per annum.
