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SG Freeze Gadget

Your super is legislated to increase from 9.5% to 12% by 2025, but the government is considering freezing it at 9.5%

Find out what that would mean for your retirement

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Your super is legislated to increase from 9.5% to 12% by 2025, but the government is considering freezing it at 9.5%

Find out what that would mean for your retirement

For you, that could mean

$0

less in retirement.

$0 Balance at retirementwith 9.5% payment
vs
$0 Balance at retirementwith 12% payment

Assumptions

Investment returns
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Inflation
Fees
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Fixed assumptions

  • This model works for accumulation funds only. It will not work for defined benefit funds.
  • This model does not allow self-employed people to project their retirement balance
  • Outcomes are based on contributions being made annually, at the mid-year point, on your fees being deducted annually and your investment returns being credited to your account annually
  • We assume that your super is invested in a balanced option
  • Superannuation Guarantee Contribution is currently 9.5% of ordinary time earnings and is presently legislated to incrementally increase to 12% by 2025
  • The LISTO applies from 1 July 2017
  • No tax is payable on fees
  • We assume that you have provided your Tax File Number to your superannuation fund
  • All amounts are in today's dollars, which means they are adjusted for inflation
  • The assumed salary increase of 3% per annum has been adopted as an average figure based on a 37-year projection — that is, from the age of 30 to the retirement age of 67
  • We assume that an annual inflation rate of 2%. In addition, a further annual increase of 1% is included to take into account the cost of meeting increases in community living standards. This means a total assumed inflation rate of 3% is allowed for. Employer and voluntary contributions, fees and the concessional contribution cap increase with inflation.
  • We assume that you will satisfy the Work test at older ages and so are able to contribute to superannuation
  • We assume that when you exceed the concessional contributions cap ($25,000 in 2020/21), you pay contributions tax according to your adjusted taxable income on any additional superannuation contributions
  • Assumes retirement at the preservation age of 67

Disclaimer

Limitations

Your retirement outcome will be affected by many things including the amount of contributions you make, fees, investment returns and regulatory changes. Some factors that may affect your retirement outcomes may not have been taken into account.

Outcome is based on your contributions being made annually, at the mid-year point, on your fees being deducted annually and your investment returns being credited to your account annually.

This is a Model, not a Prediction

The tool is not intended to be relied upon for the purposes of making a financial decision. Consider a fund’s PDS and your objectives, financial situation and needs, which are not accounted for in this information before making an investment decision. You are responsible for your own investment decisions and should obtain specific, individual advice from a financial services licensee before making any financial decisions.

I'M READY TO CHOOSE A FUND