Assumptions and other information
Calculations start from today and calculate yearly from this date.
Age at start of the pension and each 1 July determines the minimum pension amount. The calculator assumes age at anniversary of commencing date is age at 1 July for this purpose.
No allowance has been made for the temporary reduction in minimum annual payments that applies in 2010/11.
Pension payments assumed to be paid at the end of the payment period chosen.
Projected balance amounts are rounded to the nearest $10 in the first 5 years and the nearest $100 after that.
Administration fees have been allowed at the rate of $1 per week, plus 0.22% of the Account Balance p.a.
No allowance for tax has been applied to pension payments.
Earnings are added to your account yearly.
Inflation and investment portfolio earnings are taken to be constant for the whole period at the rates shown below.
The default inflation rate (2.5% per annum) and the assumed annual crediting rates for each investment option have been authorised by the Fund’s actuary (see below for details). The assumptions used are consistent and reasonable over the long-term. Actual crediting rates and inflation will differ from the assumptions used, particularly over short time periods. The resultant benefit illustration and the length of time this will last as it is drawn down as a pension can vary widely depending on the assumptions used.
No allowance has been made for any social security payments in the illustration of the pension payments.
Illustrated pension payments are shown in nominal dollars.
The broad asset allocation split between growth and defensive assets of each investment option is:
Conservative: 30% growth, 70% defensive
Balanced: 75% growth, 25% defensive
Aggressive: 90% growth, 10% defensive
These may differ slightly from the actual asset allocations of your investment options whether in AustralianSuper or another fund. If no investment option is chosen, the calculator will default to the Balanced Option.
The assumed future crediting rates are net of investment tax and investment management fees.
Click here to view the latest investment management fees.
The member protection fee does not apply to the AustralianSuper Pension.
You are strongly advised to seek professional financial advice before making an investment decision.
Key economic assumptions:
The expected long-term crediting rate net of investment related fees for each investment option is:
Conservative: 6.25%
Balanced: 8.00%
Aggressive: 8.50%
While the default settings have been approved by the Fund's actuary, no illustration can be guaranteed as factors such as the performance of your selected investment option may affect this. The expected long-term crediting rate may change if you adopt an investment option other than those provided for in this calculator. A more aggressive investment option has higher expected returns but also involves more risk. An investment with more risk will generally have a higher return over the long-term but a greater chance of a negative return over the short-term.
The long-term inflation rate default is set at 2.5%. You can change this assumption in the indexation option field which applies if you choose an annual payment other than the minimum. An overly conservative assumption may underestimate your need to maintain your purchasing power in retirement.
The ability to enter your own expected rate of investment return, net of investment fees for the term of the projection, has been provided. Please note that the assumption used needs to be consistent and reasonable over the long-term. Actual crediting rates and inflation will differ from the assumptions used, particularly over short time periods. The resultant benefit illustration and the length of time this will last as it is drawn down as a pension can vary widely depending on the assumptions used. Over the shorter-term, wider variations in investment performance can occur, particularly for those portfolios with higher allocations to growth assets such as shares and property. These variations can have a material impact on the illustrations produced.
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