It is important for you to consider your own personal financial circumstances, objectives and needs (your needs). We do not consider your needs. If you would like someone to help consider your needs about your pension withdrawal you should speak with a licensed or appropriately authorised financial adviser, to speak with a financial adviser please call us on 1300 880 588.
The estimate of your benefit provided on this website does not describe all of the conditions affecting your benefit and its availability. Your benefit will be determined in accordance with the Trust Deed, trustee determinations and Government regulations. Your benefit is an estimate; the Trustee does not guarantee you will receive this particular amount. Therefore it should be read in conjunction with the information contained in the Product Disclosure Statement and other documents sent to you.
Your benefit is based on information available to the trustee at the time this calculation has been processed. At the time of payment, your benefit may be:
While all reasonable efforts have been made to ensure the information contained in the estimate of your benefit is correct, the trustee reserves the right to correct any error or omission. You should not enter any commitments based solely on the estimate of your benefit.
If any of your personal details are incorrect, the estimate of your benefit may be affected. If you require further information or a confirmation of the estimate of your benefit, please call us on 1800 682 525.
This simulator illustrates the effect of investment returns and pension drawdowns on how long your pension may last.
The simulator cannot take into account changes in your personal circumstances, actual future investment returns, inflation or future changes to the Age Pension and tax regulations. It assumes you are single, a homeowner and that you don't have any assets outside of your super.
The simulator uses default assumptions about future investment returns and inflation. These are considered reasonable at the current date based on long-term economic modelling (by Mercer Investment Consulting). You can modify these assumptions.
The simulator gives the results in today's dollar values. The today's dollars amounts have been calculated by deflating the projected dollar amounts using the rate of wage inflation in the assumptions.
The simulator is designed to calculate how many years your super may last in retirement up to a maximum age of 105.
This simulator does not take into account your personal objectives or your own financial situation. The simulator cannot determine your future super benefit or income and the projections shown are intended as a guide only, based on the information you input. You should not rely on the simulator in isolation to make any decisions about your super or any other financial product, and before making a decision you should consider seeking advice from a licensed financial adviser.
The words 'a comfortable retirement' have the same meaning as the ASFA Retirement Standards. What you consider to be a comfortable retirement for you may be higher or lower than the comfortable retirement amount in the ASFA Retirement Standards.
You agree that Mercer (and its related entities) we can use any information you have provided in using the simulator (and any illustrations produced for you by the simulator) for marketing, research and improving customer experience.
Other than as required under consumer protection law, under no circumstances will Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 79 004 717 533, ASFL 235906, Mercer and its related entities be liable for any loss or damage caused by your reliance on information obtained from using this simulator.
This simulator can be used to estimate how long your account based pension might last for a given retirement income. It has been designed for Australian conditions only.
This simulator will give you an estimate of your retirement income in today's dollar values. Showing results in today's dollars allows you to consider your future retirement income in the context of today's goods and services and your current standard of living.
The today's dollar amounts have been calculated by deflating future dollar amounts using community wage growth. Wage growth is commonly described as a combination of price inflation plus a margin for improvements in living standards. It is assumed your personal salary growth is the same as community wage growth. The simulator estimates wage growth by adding a margin of 1.0% p.a. to the rate of price inflation in the assumptions.
All simulator inputs should be in today's dollars.
Unless otherwise stated the calculations are based on legislation and rules at 1 July 2017. In particular, the Simulator allows for:
The Simulator does not allow for:
Please note that the superannuation changes legislated November 2016 are allowed for in the Simulator, including the new $1.6 million transfer balance cap applied to retirement phase accounts.
The Simulator assumes that certain legislative thresholds and limits relating to superannuation, tax and social security are increased or indexed in line with wage inflation (unless otherwise stated). The actual rate of increase in these legislative thresholds and limits may vary from the assumed wage inflation rate.
The Simulator will be updated from time to time with changes in the legislative environment.
You are assumed to be exactly your input age; for best results, you should use your nearest age at the current date.
It is assumed that all of your superannuation is in an account-based pension, where you can choose how your money is invested (investment strategy) and how much money to draw down each year. There is no tax payable on earnings or money taken out in respect of a superannuation account-based pension, but you have to take a minimum amount (set by legislation) each year.
The simulator works on the basis of a desired level of income in retirement. As a default this is set to the annual amount you nominated to draw from your super, plus an estimate of your Centrelink Age Pension. You can modify this to a level that suits you. If you choose a lower level of desired income, your super balance will last longer in your retirement, while choosing a high level of desired income might exhaust your super balance over fewer years (compared to a lower level of desired income). If you select a low level of desired income, the simulator may assume a higher level of retirement income than necessary to achieve your selected desired income in order to comply with the minimum amounts that legislation requires you to draw down from your superannuation pension.
This is the annual amount you nominated to draw from your account based pension. The simulator assumes you will modify this amount in the future to make up the balance of your desired income after allowing for any Age Pension entitlement.
This is an estimate of the amount of Age Pension you would be entitled to based on the following assumptions:
In the projection, the Age Pension is indexed with wage inflation, while the asset and income test thresholds are indexed in line with price inflation. The Simulator assumes the Age Pension income test to be as it applies to new Age Pensioners from 1 January 2015 and asset test as it applies for all Age Pensioners from 1 January 2017.
If you have already retired it is possible that different rules apply to you which would change the results. You should seek financial advice if this applies to you.
The simulator lets you model the impact of six different investment strategies (each with a default assumed before-tax investment return) according to the following mix of growth and defensive assets on your estimated super balance and your estimated retirement income:
The default assumed investment returns have been set based on simulations from Mercer's Capital Market simulator and are considered reasonable long-term estimates at the current date. The default returns listed above are illustrative only and should not be taken to provide an estimate of the amount of investment earnings you will receive. The rate of investment return input is assumed to remain constant over the projection period, except there is an adjustment to allow approximately for the removal of tax during the pension payment phase. If you have a short investment time horizon (i.e. less than 10 years) you may wish to consider current economic conditions in setting the investment return. Your time horizon includes the period your super will last in retirement. You can edit the assumed rate of investment returns.
Each of the values for investment return and wage growth remain the same for the whole period of the projection. The default values for these items can be changed. However, you should note that these default values are reasonable for the current conditions and are consistent with each other. If you change the default values it is possible that unrealistic scenarios will be projected. The default investment return assumption depends on the investment strategy you select. Note that the simulator imposes some limits on the fixed assumptions but the actual experience could be outside these ranges (e.g. investment returns could be negative in some years).
The results given depend on the assumptions input. If these assumptions are not borne out in practice the actual level of your super balance at retirement may be different from that projected. In particular, if you are closer to retirement, short-term negative investment returns could significantly reduce the lump sum you may be able to take at retirement. It is recommended that you get regular updates of the projections and use different assumptions to illustrate, for example, the effect of different investment returns.
There are other assumptions used in the calculations which are set by legislation and cannot be changed (e.g. tax bands and Age Pension means test limits).
There are significant taxation penalties if you do not provide your Tax File Number to your superannuation fund. The simulator operates on the basis that you have provided your Tax File Number, and cannot simulate the impact of not doing so.
The simulator allows for the fact that for account based pensions taken after age 60, investment earnings are not subject to tax.
Benefit payments are tax-free if you are aged 60 or over. This is reflected in the calculations of the simulator.
The assumed investment management and percentage based administration fees (if any) are the fees that are expressed as an annual percentage of your account balance. The default value of this is based on items such as the administration fees, investment fees and indirect cost ratio for the selected investment strategy. The simulator deducts these amounts from the investment return shown prior to calculating earnings for each year.
The average life expectancy age has been calculated based on the Australian Life Tables 2010-2012. The calculations allow for future improvements in longevity from your current age, based on historical improvement rates.
Home ownership status is used to assist in calculating your eligibility for the Age pension entitlement, the simulator assumes that you are a single and a homeowner.
This simulator has been prepared by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 79 004 717 533, Australian Financial Services Licence #235906. Any advice contained in this simulator is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this simulator, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised, financial adviser if you are unsure of what action to take. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917.
This simulator is not intended as an advertisement for any product issued by MOAPL or any of its related entities.
