Meet Sarah

She’s 55 and plans to retire when she’s 67. Sarah doesn’t think her super balance is high enough and worries about paying for the simple things once she retires.

  • Age 55
  • Plans to retire 67
  • Salary $50,000
  • No extra contributions
  • $123,000 super
  • Single
  • Employer contribution 9.5%

Based on Sarah’s super balance alone, her estimated income would be just $7,621 each year. However, if Sarah is eligible for the Age Pension her retirement income increases to $31,604 each year. This was more than she thought she’d receive given her low balance. Knowing that she can use the Age Pension to top up her super Sarah feels more comfortable she’ll be able to afford basic necessities when she retires.

  • Tasplan Super Tasplan Super Age Pension example

    This is a model, not a prediction. The results from MoneySmart’s Retirement planner calculator are based on the limited information provided and assumptions made about the future. The amounts projected are estimates only and aren’t guaranteed. Results calculated as at 5 June 2019.

    This calculator can’t predict your final super benefit or level of retirement income with certainty because this will depend on your personal circumstances, unexpected life events, the Age Pension paid, investment earnings, tax and inflation.

    This calculator assumes that your contributions are steady and predictable and that all assumptions remain steady.

    Don’t rely solely on this calculator to make decisions about your retirement. There may be other factors to take into account. Consider your own needs, financial situation and investment objectives. You may wish to get advice from a licensed financial adviser.

    Example assumes:

    • a medium fee level before and after retirement ($50 administration fee each year and 0.6% indirect cost ratio each year)
    • a balanced investment option before retirement (4.8% return each year before fees and taxes, 6.5% tax on earnings each year and 0.5% investment fees each year)
    • a conservative investment option after retirement (3.8% return each year before fees and taxes plus 0.3% investment fees each year)
    • $100 for insurance premiums/fees each year
    • 3.2% total inflation (2% each year for rise in cost of living and 1.2% each year for additional rise in living standards)
    • they are home owners
    • has personal assets of $25,000
    • super will run out when they reach age 90.