Take a peek into the future

Our retirement income calculator allows you to take a peek into the future and estimate your potential retirement income.

By using our interactive calculator you can adjust a number of variables such as your retirement age, your level of contributions and your investment options, to see what impact these changes may have on your super balance and your retirement income.

You can also look at what effect working part-time, or taking a transition-to-retirement pension may ultimately have on your long-term financial goals.

But of course, the calculator is not a substitute for professional financial planning advice.

If you think you may benefit from some personal advice, don’t hesitate to contact us on 1300 LGSUPER (1300 547 873).

Before you start, just make sure you read the Disclaimer and Assumptions.

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$000,000 Income at retirement
$000,000 Projected balance at retirement
00 Run out age

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$000,000 Income at retirement
$000,000 Projected balance at retirement
00 Run out age
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If your super pension payment is less than the minimum allowed, we have assumed excess drawdown will be invested in super.

Contributions

Please tell us about any additional contributions you make. The sliders are limited by your maximum available contribution.

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Investment mix

See how your investment choice can affect your retirement income.

Part time work

Are you planning to work part time?

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Transition to retirement

A transition to retirement strategy allows you to draw money from your super while you continue to work. You can top up your super by contributing some or all of your salary providing a tax-efficient way of saving for retirement. We’ll do these calculations for you to give you an idea of how much you could save.

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Age pension

Help us calculate your age pension eligibility. Your age pension payments are automatically included in your retirement income

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Spouse

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Would you like to include your spouse?:

Your spouse's details

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Your spouse contributes

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Now that you’ve taken a peek into the future, you may want to know more about how you start making the most of your super investment.

Combine your super into one account and start saving money on fees and charges.

You can combine your super online or call us and we’ll help you combine all your super into your Local Government Super account.

Find out more about our different investment options.

Check out our different investment options and learn more about how we invest your super and how this affects the returns you earn on your investment.

See how you can make your super contributions really count.

Find out more about all the different ways you can make contributions and which ones may help you reduce the income tax you pay.

Get some professional financial planning advice.

Local Government Super offers affordable financial advice and this can be particularly valuable if you’re starting to actively plan for your retirement. Just give us a call if you’re interested in talking with one of our financial planners.

Contact us

For more information, visit lgsuper.com.au or call on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.

Superannuation calculator assumptions

Inflation

Wage inflation of 3.5% pa has been assumed by default. This rate has also been used when discounting future amounts to current values.

Personal income

The user's salary is assumed to increase in line with wage inflation. In any future periods where the user has a period of part-time employment, their salary is reduced pro-rata. Tax calculations allow for Personal Income Tax rates, the Medicare Levy, the Low Income Tax Offset and the Senior Australian Tax Offset. Threshold and Offset amounts in the first year are based on current rates. Thereafter they are indexed in line with wage inflation.

Employer contributions

The user is assumed to receive superannuation guarantee contributions. The assumed rates of contribution are:

Financial yearRate
1/7/2014 – 30/6/20219.5%
1/7/2021 – 30/6/202210.0%
1/7/2022 – 30/6/202310.5%
1/7/2023 – 30/6/202411.0%
1/7/2024 – 30/6/202511.5%
1/7/2025 onwards12.0%

Superannuation guarantee contributions are generally subject to the maximum contribution base, which is currently $52,760 per quarter. This threshold is indexed annually in line with wage inflation.

Member contributions

Regular concessional or non-concessional contributions entered by the user are assumed to increase in each year in line with the user's salary. In any future periods where the user has indicated a period of part-time work, the user's contributions are assumed to be adjusted pro-rata in line with that proportion of part-time work. Contributions are assumed to be made in the middle of each year.

The amount of a one-off non-concessional contribution entered by the user is assumed to be fixed, and is not indexed.

Where a concessional or non-concessional contribution exceeds the corresponding legislated contribution thresholds, the contributions are taxed accordingly.

The concessional and non-concessional contribution thresholds are indexed in line with the assumed rate of wage inflation.

Co-contribution

In each projection year, the user's eligibility for a Government co-contribution is assessed based on their salary and non-concessional contributions. A co-contribution is made to the superannuation account if applicable. The co-contribution thresholds and maximum amount are indexed in line with wage inflation.

Investment earnings

The calculator assumes the following investment returns for each investment strategy.

Investment strategyInvestment return in superannuation account
(% p.a., after investment management fees and tax)
Investment return in pension account
(% pia.. after investment management fees, nil tax)
High Growth6.80%7.00%
Balanced Growth5.60%6.00%
Balanced4.60%5.00%
Conservative4.00%4.50%
Cash3.60%4.25%

If you select the 'Default' investment strategy before retirement, your superannuation account investment option is assumed to change with your age, as per Local Government Super's default investment option, as follows:

Investment optionAge*
High GrowthUp to 44 years
Balanced Growth45 - 49 years
Balanced50 - 54 years
Conservative55 years and over

* As you move from one age band to the next, your superannuation account and future contributions are assumed to be switched automatically to the investment option for your new age band.

The investment return assumptions for the pension account (which are net of investment management fees, nil tax) are consistent with the investment objectives of each investment option and market indicators, assuming future increases in the Consumer Price Index of 2.5% p.a. (which is the mid-point of the Reserve Bank of Australia's 2-3% p.a. target range for price inflation). The investment return assumptions for the superannuation account are determined by subtracting an allowance for tax from the return assumptions for the pension account.

The investment returns you select with the sliders on the Super results page are assumed to be 'After Fees and Tax'. This means after investment management fees and tax levied within a superannuation fund on investment gains only. It does not take into account other taxes such as those payable upon withdrawal of a benefit.

The assumed investment returns are illustrative and should not be taken to be an estimate of the amount of investment earnings you may receive. Investment returns are assumed to remain constant over the projection period.

Fees and insurance premiums

The 'Investment earnings' section above includes an implicit allowance for investment management fees assumed to apply to each investment strategy. The following additional default fees and insurance premiums are assumed to apply. You can change the assumed fees and insurance premiums at the top of this page.

Superannuation accountPension account
Assumed administration fee$71.24 per year$71.24 per year
Assumed contribution fee (% of contributions)Niln/a
Assumed insurance premiumsplease refer to lgsuper.com.au/insurance for premiumsnil
Assumed advice feenilnil

Fees are assumed to be tax-deductible at 15% in the fund. Fees and insurance premiums are assumed to be deducted on a monthly basis.

Dollar fees and insurance premiums are assumed to increase in line with the assumed level of general wage inflation. Other fees are assumed to remain constant in percentage terms over the projection period.

Life expectancy

Life expectancies allow for future mortality improvements. They were derived based on the medium mortality rate assumptions in the Australian Bureau of Statistics in 'Population Projections 2006-2101'.

Age pension

Current Age pension thresholds and rates of payment are allowed for, based on the Single/Couple and Homeowner status of the user. Thresholds and rates of payment are indexed in line with CPI.

The age pension is subject to an asset test and an income test.

The asset test is based on the accrued balance of superannuation assets and other assets.

The age pension income test is based on deemed, rather than actual, income on superannuation and other assets.

Transition to retirement

The transition to retirement optimisation: assumes that the user continues working at the same rate; makes additional salary sacrifice contributions and draws a pension such that their net income remains constant; calculates the contribution and drawing level which maximises the benefit within the superannuation environment.

Drawings

The drawings from superannuation in retirement are calculated as: Required income less other income (as entered by the user) less any age pension amounts (as calculated by the program).

Minimum drawings

There are statutory minimum superannuation drawings in both the TTR phase and in retirement (once funds have been converted to the pension phase). For the purpose of this projection, this minimum is effectively ignored in the TTR phase, on the basis that any excess drawings could be re-contributed as non-concessional contributions. Minimum drawing requirements are also ignored in the retirement phase. Though the funds would have to be withdrawn from superannuation, if they were not required to be spent to meet the individual's target income, they would still be available, say in a bank account. Seen from the perspective of retirement funding, and without the complication of including an account external to superannuation, it seems better then to ignore the minimum drawing levels.

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