Why use this calculator
Superannuation is the foundation of retirement savings for most Australians. Understanding how your super is projected to grow helps you determine if you are on track for a comfortable retirement or whether you need to make additional voluntary contributions. Small changes now can result in hundreds of thousands of dollars difference at retirement age.
How to use it
Enter your current age, planned retirement age, current super balance, annual salary, employer contribution rate (currently 11.5% in 2024-25), and expected investment return rate. The calculator projects your balance at retirement, accounting for the 15% contributions tax on employer contributions.
The formula
Each month: Balance = Previous Balance x (1 + Monthly Return) + Monthly Contribution. Monthly Contribution = (Salary x Employer Rate x 0.85) / 12, where 0.85 accounts for the 15% contributions tax. Projected over (Retirement Age - Current Age) years.
Worked examples
30-year-old earning $85,000 with $50,000 current balance at 7% return
Projected balance of approximately $950,000 at age 67
40-year-old earning $100,000 with $150,000 balance at 6.5% return
Projected balance of approximately $750,000 at age 67
When people use it
- Planning whether your current super trajectory meets retirement goals
- Evaluating the impact of salary increases on super growth
- Comparing different super fund return rates
- Deciding whether to make additional voluntary contributions
Tips
- The super guarantee rate is set to increase to 12% by 2025-26
- Consider making additional voluntary contributions to boost your balance
- Review your super fund's investment option to match your risk profile and time horizon
- Consolidate multiple super accounts to avoid paying duplicate fees
Questions people ask
- What is the current super guarantee rate?
- The super guarantee rate for 2024-25 is 11.5%. It is legislated to increase to 12% from 1 July 2025.
- Why is 15% deducted from contributions?
- Employer super contributions are concessional (pre-tax) contributions and are taxed at 15% within your super fund. This is significantly lower than most people's marginal income tax rate, which is why super is a tax-effective way to save for retirement.
- How much super do I need to retire comfortably?
- The Association of Superannuation Funds of Australia (ASFA) estimates that a comfortable retirement requires about $690,000 for a couple or $595,000 for a single person (as of 2024). However, your needs may vary depending on your desired lifestyle and whether you own your home.