Assumptions and disclaimer

  • Growth rate: 6.25%
  • Salary index: 4%
  • Inflation: 3%
  • Strategy start date: Sun Jul 1 2012

The Growth Rate entered represents the total p.a. investment return (split 5.50% income and the remainder growth).  If the Growth Rate entered is less than or equal to 5.50%, then the entire amount is assumed to be income.

Capital gains tax: 30% turnover per annum.

All income is indexed at the 'Salary index' rate specified above.

Inflation is calculated at the 'Inflation' rate specified above.

Uses the current tax rates, including changes in future years that have already been legislated.

Pensions are paid monthly.

Superannuation contributions are paid quarterly.

Assumes eligibility to make salary sacrifice payments up to the aged based limits into superannuation with your current employer.

Contributions are capped in accordance with the concessional and non-concessional contribution limits.  The concessional contribution cap for individuals over age 50 for the 2009/2010 and 2010/2011 financial years is $50,000 and from the 2012/2013 financial year and onwards is $25,000 per year.  It is your responsibility to ensure that the total of your concessional contributions (employer super plus salary sacrifice) does not exceed the cap.  If you contribute more than the limits, your excess contributions will be taxed at the highest marginal rate of 46.5%.

Where relevant, calculations include the Medicare Levy, Low Income Tax Offset, Senior Australians Tax Offset and the Mature Age Worker Offset.

Pension income is tax free when you reach age 60, however this projection only applies the tax free status if you're 60 at the 1st of July of the calculation year.

 The Retirement Adequacy calculator is provided by H.E.S.T. Australia Limited ABN 66 006 818 695 AFSL 235249, trustee of Health Employees Superannuation Trust Australia (HESTA) ABN 64 971 749 321.

The purpose of the Retirement Adequacy calculator is to provide education on how contributions, investment returns, fees and other factors may impact how much super you may have in retirement.  The Retirement Adequacy calculator is provided for illustrative purposes only and the projections are not guaranteed in any way.  The Retirement Adequacy calculator is a mathematical tool and cannot predict your final super balance and actual outcomes may differ significantly.

The Retirement Adequacy calculator is based on assumptions.  H.E.S.T. Australia Limited's actuary has verified that the assumptions are reasonable.  You can change the assumptions but you should carefully consider the appropriateness of doing so.

The calculator is not intended to be relied on for the purposes of making a decision in relation to financial products.  You should consider obtaining advice from a financial services licensee before making any financial decisions.

This Retirement Adequacy calculator is based on interpretation of the law at 30/09/2011.  Any changes to these laws may impact on the projections produced.

While every attempt has been made to ensure the accuracy and reliability of the information, H.E.S.T. Australia Limited makes no representations in respect of the accuracy, currency or completeness of the information and projections provided by the calculator, and, accepts no liability for any loss or damage as a result of any person relying on any information or projections obtained by using the Retirement Adequacy calculator.

You should obtain and consider the relevant HESTA Super Product Disclosure Statement before making any financial decision in relation to HESTA products.