Disclaimer
This calculator is provided by the Emergency Services Superannuation Board ABN 28 161 296 741 the Trustee of the Emergency Services Superannuation Scheme ABN 85 894 637 037 (ESSSuper). The information contained in this calculator is of a general nature only. Before making a decision about an ESSSuper product, you should consider the appropriateness of the product to your personal objectives, financial situation and needs. It may also be beneficial to seek professional advice from a licensed financial planner or adviser. An ESSSuper PDS is available at esssuper.com.au or by calling 1300 655 476.
The small change modeller (calculator) aims to help people learn about the value of super and how small changes today can make an impact on your retirement income in the future. The information it contains is of a general nature only. This calculator is intended for illustrative purposes only. Designed to be simple to use, this tool aims to be a valuable step in your financial education, allowing you to put the value of super in daily context.
The results provided by the calculator are estimates only and are not guaranteed. Actual outcomes depend on uncertain factors such as investment returns and relevant legislation.
The calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product, including a decision in relation to a particular superannuation fund or strategy. ESSSuper has made reasonable efforts to ensure the accuracy of the calculator results but does not accept liability for acts or omissions based on its content.
ESSSuper is not related to Gallagher Benefit Services Pty Ltd (Gallagher). Neither ESSSuper, nor the Victorian Government, guarantee or endorse any products or advice provided by Gallagher, or are responsible for any actions of Gallagher.
Items
The costs of the everyday items are estimates and do not necessarily represent the exact cost to you if you were to give up the item, at the specified frequency, as represented by the calculator.
Contributions
In giving up one or more items in the calculator, you are then assumed to save an amount equal to the cost of the item(s).
Savings are assumed to be added as regular non-concessional contributions into superannuation. The calculator assumes that these contributions can be made within your non-concessional contribution limits (being $110,000 per annum or $330,000 in one year by utilising the "bring forward" rule), and so no tax is levied on these contributions.
Inflation
The projection assumes a future wage inflation of 4.0% p.a and future price inflation of 2.5% p.a.
Results are expressed in today's dollars by discounting future amounts using the wage inflation rate in the accumulation phase and price inflation rate in the retirement phase.
Target income is also assumed to increase at the wage inflation rate.
These assumed inflation rates and the approach to discounting are consistent with ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603.
Investment earnings
The default investment return and fee assumptions are:
| Accumulation Phase Return
(Target return above CPI less fees and taxes) | Pension Phase Return
(Target return above CPI less fees and taxes) | Investment fees +
transaction costs* |
|---|
| High risk | 5.95% | 6.45% | 0.47% |
| Medium risk | 4.00% | 4.50% | 0.44% |
| Low risk | 1.22% | 1.44% | 0.19% |
Investment earnings in accumulation accounts are taxed. Returns in the retirement phase are not used in the calculations, but are included here for illustrative purposes and to show the impact of tax on investment earnings.
Administration fees and insurance premiums
The calculator assumes that saved amounts are contributed to an existing superannuation account. No additional dollar based fees would therefore be incurred when making these contributions. Dollar-based administration fee and insurance premiums are therefore ignored for the purpose of this calculator. Additional contributions into superannuation would result in a higher superannuation balance, and so asset based fees may be incurred.
Legislative assumptions
A number of assumptions in this calculator are prescribed by legislation. These assumptions include: the tax on superannuation contributions and the tax on investment earnings.
Where there is relevant legislation, the assumptions made in this calculator reflect current legislative arrangements. One uncertainty regarding future superannuation entitlement relates to possible future legislative changes.
Although some future changes in the legislation relating to superannuation are likely, it is not possible to know what these changes may be. Where there is relevant legislation, current legislative arrangements therefore represent the most reasonable basis for estimating future superannuation entitlement.
Updates to legislative assumptions are made as soon as practicable after such changes are announced. The calculator is based on legislative arrangements as at 1 July 2024.
Retirement age
If you enter a current age less than 67, the calculator will assume a default retirement age is 67. If you enter a current age of 67 or older, the calculator will assume a default retirement age of your age at your next birthday. This approach is consistent with ASIC Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603.
Limitations
This calculator attempts to include the most significant and relevant features of the superannuation environment, and to do so in an accurate manner. However a calculator such as this is not able to address or include all facets of superannuation The most significant limitations are:
- Government co-contributions are not included in the calculator. As the calculator assumes that saved amounts are contributed to superannuation as non-concessional contributions, you may also be eligible for co-contributions from the government (if your salary is less than $60,400 p.a.). If you were eligible for co-contributions this would potentially increase the benefit of saving amounts related to giving up an everyday item.
- Instead of savings by making non-concessional contributions, an equivalent pre-tax amount could be saved by making concessional contributions. For most people this would increase the benefit of savings due to the lower tax payable on concessional contributions compared to salary.
Last updated 1 July 2024