On the SuperGuide website, we use a free online calculator when making projections on how much money you will need for retirement, and the type of income you can except for a given amount of retirement savings.
The calculator, MoneySmart Retirement Planner, is supplied, developed and updated by the government via the ASIC MoneySmart website. We have now produced a video (see below) to explain how the calculator works, to enable readers who want more specific projections than what our suite of articles on ‘how much super is enough’ can provide (see list of SuperGuide articles at end of this page).
Anyone can access the free MoneySmart calculator and work out the type of lifestyle they can expect in retirement. You can vary the assumptions when using the calculator, including:
- rate of investment return
- rate of inflation (cost of living)
- amount of Age Pension entitlements (if any)
- how long the lump sum is supposed to last (your expected life expectancy, or beyond)
- what age you choose to retire.
Note: In our series of ‘how much super is enough’ articles (see list at the end of this page), SuperGuide does not use the default assumptions on the calculator; rather we have adapted the assumptions to reflect the feedback and experience of our readers. For a summary of our specific assumptions, see SuperGuide article How much super do you need to retire comfortably?
We have received many emails over the years requesting information and instructions on how to use the MoneySmart Retirement Planner, in particular, for those Australians wanting to obtain more specific projections about their retirement.
SuperGuide has listened, and our General Manager and tech whizz, Robert Barnes, has put together a video to help you through the process, which you can view below:
We believe the MoneySmart Retirement Planner is a very powerful and interesting calculator that can give you some useful insights into both how your superannuation can accumulate, and what range of income you can expect once you retire. Importantly this calculator considers both super and Age Pension projections when you retire, since approximately 70% of all retired Australians are on a FULL or PART Age Pension.
Feel free to let SuperGuide know what you think of the video, and whether you need further information on the calculator, or other videos on other calculators or superannuation matters.
For information on how much super is enough…
For information on how much super you need for a comfortable retirement, or a more-than-comfortable retirement, see the following SuperGuide articles:
- How much super do you need to retire comfortably?
- Retirement income: Living on more than $60,000 a year
- Retirement: Want to live on $100,000 a year?
- Moving targets: Come on, how much super do I really need?
- Crunching the numbers: a $1 million retirement (7% and 5% returns)
- Low yields: A $1 million retirement on 3% or 2% returns
- Crunching the numbers: a $1.6 million retirement
- Retirement Income Reckoner
- Retirement: Today’s dollars, and why $1 million can’t last forever
- SMSFs: Can $1 million last longer than you?
- Life expectancy: Will you outlive your retirement savings?
- What is the retirement age in Australia?
- The super challenge: At what age should I retire?
- Retirement Age Reckoner: Discover your preservation age and Age Pension age
- Accessing super: What is my preservation age?
- Age Pension age increasing to 67 years (not 70 years)
- Australian Age Pension: 10 important facts you should know