Guide yourself to a
healthy retirement

The simple savings calculator is a starting point to get you thinking about:

• The lifestyle and level of income you are targeting in retirement
• If you’re on track to achieve that target.

It gives you the amount you should have in your superannuation account now, to achieve a retirement income of 65% of your pre-retirement salary that will last for 25 years from age 65 to age 90.

For example, John is aged 40, has a gross income today of $75,000 and will remain invested in the Russell Balanced Portfolio until retirement. Based on the results from the calculator, he needs to have $269,071 saved in his superannuation account now.

The result means that if John has an account balance now of $269,071, it is estimated, using the assumptions listed, that at age 65 he will be able to receive an income of 65% of his pre-retirement income.

So he will receive the equivalent of $48,750 in today’s dollars for 25 years from age 65 to age 90 before his money will run out.

The calculator doesn’t take into account any additional contributions that John can make or any other sources of income such as social security or investments outside superannuation.

If John could make additional contributions of 2% of his salary going forward to age 65, he would need to have $248,000 saved now instead of $269,071. If he could contribute 5% going forward he would only need to have $216,000 currently saved.

As the calculator is a guide, you should look at each of the assumptions we have used and determine how relevant they are to you:

• Is 65% of your pre-retirement income right for you?
  The calculator is based on 65% but you may need more or less depending on the lifestyle you want in retirement. This will impact the amount you need to have saved now.
• Will you have other sources of income?
  The calculator doesn’t take into account any social security benefits, such as the Age pension. Nor does it take into account other investments you may have, such as investments outside superannuation.
• How long do you want your retirement income to last?
  The calculator is based on retirement at age 65 and a lump sum at retirement lasting twenty five years until age 90. If you want to retire at a different age or need the income to last for a different time frame, this will change the lump sum you need to target.
• Which investment strategy will you use?
  The calculator is based on maintaining the selected investment option throughout your membership and into retirement. If you were to select a different investment option at any stage of your membership, this will change the lump sum you need to target. For example if you select a Balanced investment option when using the simple savings calculator to determine your original target, but then make an investment switch to a conservative option during your membership, you will need to revisit the amount you need to target as it will change.
• Can you make additional contributions?
  The calculator doesn’t take into account any additional member contributions. If you are able to make regular, additional contributions, the amount you need to have saved in superannuation now will reduce.

The figures generally represent what is required for a single person but it can be used for a couple on the basis that you are both the same age and intend to retire at age 65. You just need to enter your current combined household income.