Annuities and Pensions Calculator

If you receive an annuity or allocated pension and you want to use the Pension calculator, use this Annuities and Pensions calculator first to work out what amounts to include in the asset test and the income test for your annuity and/or pension. If you have more than one annuity or pension then use this calculator for each one and add the results together for each type of annuity or pension.

The calculator relies on certain assumptions (see below). Please note that if the assumptions used are not correct or if there is any variation from these assumptions, this may have a significant impact on the projected outcome.

Please note: these calculators are Windows compatible only. You require Java to be enabled in the preferences settings of your browser.

STEP 1

Enter all the relevant details on the 'Your Details' tab.

STEP 2

Click on the 'Means Test Amounts' tab to see the amounts to include in the asset test and the income test for your income stream.

STEP 3

You can now use these amounts in either the Pension Singles calculator or Pension Couples calculator to work out what your benefit is.

This program requires a Java enabled browser.

Important Notes

1. Both Employer and Employee contributions increase each year in line with an assumed inflation rate of 3% p.a. The actual rate of inflation may differ significantly from this rate (see 19 below).
2. The calculator uses an investment rate of return of 6.25% p.a. (see 19 below).
3. Your superannuation assets increase each year with investment earnings (net of tax) at a default rate of 6.25% pa. You may change the default rate to see the effect that this may have. The actual rate of return on your investments may differ significantly from 6.25% p.a.
4. Employer contributions are calculated to be not less than the minimum amount you are entitled to under Superannuation Guarantee Legislation which currently stands at 9% p.a. 15% contributions tax is deducted from employer contributions in the calculations.
5. Member Contributions: After tax contributions are contributions made out of your net pay. Pre tax (i.e. salary sacrifice) contributions are contributions on which you claim a tax deduction. 15% contributions tax is deducted from Pre tax contributions in the calculations.
6. Co-contribution: If you select the Co-contribution option, the calculator will assume that you are eligible for the Co-contribution and automatically calculate the amount of any government Co-contribution to which you may be entitled in each year of the projection. In calculating these amounts, the calculator assumes that the Co-contribution rules for the 2007/08 year of income will remain unchanged until you retire, with the income thresholds increasing in line with inflation at the assumed rate, and with the maximum Co-contribution in any year of income remaining constant at $1,500.
7. These calculations make no allowance for any fees or insurance charges.
8. The calculation caters only for employees of accumulation style funds such as an industry superannuation fund. No allowance has been made for the self employed or for members of defined benefit funds.
9. Interest is calculated and compounded yearly. Yearly contributions are assumed to be paid half way through each year. 10. The salary figure usually means your regular gross pay, but commissions or other allowances may be included depending on your own particular fund.
11. The calculator assumes that the date set on your computer is correct. Projections are started from this date, and your age is assumed to be at this date.
12. You may optionally specify that you will spend a period not working during which it is assumed that no superannuation contributions are made by you or on your behalf between the age contributions stop and the age contributions restart. During this period investment earnings are still calculated and added.
13. The results shown depend on the assumptions made. If actual experience differs from the assumptions made then the results may change significantly. On the second tab you may experiment with two of the more important assumptions (your contributions and the level of investment earnings) to see the changes that result.
14. The projections give a general indication only of the build-up of your superannuation through to retirement. The figures are based on the assumptions above and are GENERAL ILLUSTRATIONS ONLY. They are not intended to be a substitute for professional financial advice. They do not make any allowance for fees, insurance premiums or taxes on the superannuation benefit received at retirement.
15. The results shown are NOT GUARANTEED in any way. The actual performance of a fund will depend on future economic conditions, investment management and future taxation.
16. HIP and its related companies specifically disclaim any liability (whether based in contract, tort, strict liability or otherwise) for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with the access to or use of this calculator.
17. Other than as required under consumer protection law, under no circumstances will HIP and its related companies or Rice Warner Actuaries Pty Ltd be liable for any loss or damage caused by a user’s reliance on information obtained by using this calculator. 18. You should not make any decisions on the information contained herein without first consulting with your financial adviser or accountant.
19. The assumptions used have been provided by Rice Warner Actuaries Pty Ltd, ABN 35003 186 883 AFSL 239 191. Rice Warner has advised that they represent reasonable assumptions as at 1 May 2008. The Trustee will arrange for them to be reviewed in the future with the aim of ensuring that they remain appropriate for the purposes of this calculator, the provision of general illustrations only. You can alter the rate of interest to have the calculations performed on alternative bases.

You may wish to seek professional financial advice as to the assumptions that would best suit your particular circumstances.

We have included some economic data to allow you to put the assumptions in context.

* The survey returns are net of tax and investment management charges