The MoneySmart Retirement Planner is a powerful calculator developed by ASIC. At SuperGuide we use it in many of our articles about retirement income but we highly recommend that SuperGuide readers use the calculator themselves to tailor more specific projections for themselves.
The calculator allows you to specify your age, income, super balance and desired retirement date (and also for your partner) and can give you an estimate of how much super you are projected to have at retirement, and how long it is likely to last.
We are big fans of the calculator because it allows for the Age Pension (and you can also specify if you are not eligible for it), and lets you change assumptions around factors such as investment returns, fees and insurance.
You can also see the impact of making additional super contributions or changing how long you would like your super to last for.
It’s not perfect and should not be completely relied on as a prediction of what your retirement income will be. Some of it’s drawbacks are that it only allows for a flat level of income and contributions. You cannot for example add an inheritance or only add additional contributions for a short period of time. The calculator also does not allow for your savings outside super.
It is very useful though as a way to get a general feeling for how much you broadly need to save to generate a particular level of income. It also can aid a better understanding of the key factors that make a difference in boosting your super balance.
There can be a bit of a learning curve with the Retirement Planner, and it may appear intimidating at first glance, so we have created a short video to help you get an understanding of how the tool works. We hope you find it useful, and it inspires you to try toe calculator for yourself.
For information on how much super you might need in 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
- The definitive SMSF guide to franked dividends
- Understanding your life expectancy
- 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
- What age can I access my super (Preservation Age)?
- What is the current Age Pension age?
- Am I eligible for the Australian Age Pension?