Mercer’s Retirement income simulator is a notch above many other projection tools. Among its features, the simulator can model the outcome of variable investment returns.
Most calculators assume you earn the same, stable return year after year. We know this doesn’t reflect reality. A calculator that includes the real-life variability of returns allows you to stress test your results and see how a negative return at the wrong time can put a spanner in the works.
Another helpful feature is the ability to enter the amount you can afford to contribute to super each year, and have the calculator work out the optimal mix of salary sacrifice and after-tax contributions for you.
The simulator also has myriad options that can be tailored to your situation. You can model career breaks, lump sum withdrawals, one-off contributions, you and your partner retiring at different times, and include your assets outside super for more accurate modelling of your Age Pension entitlements.
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