Australian Super Assumptions
The assumptions and limitations used for Australian super calculations in Plan in Decades.
These settings apply only to Australian super calculations. The calculation retirement age does not start or alter a scenario’s Retirement milestone, and it does not replace the account’s separate withdrawal-access rule.
The example below preserves the values previously shown in the scenario notice. Values in a saved scenario may differ, so review the live scenario inflation settings and account settings before interpreting a result.
Calculation assumptions
| Setting | Example value | What it means |
|---|---|---|
| Calculation retirement age | 67 | Used for the Australian super present-value calculation. It does not determine when the user stops working or starts the scenario’s Retirement milestone. |
| Preservation age applied | 60 | This is calculated from date of birth. A user-entered calculation retirement age below known preservation age is replaced with preservation age for the calculation. Actual access also depends on satisfying a condition of release. |
| Drawdown assumption ends | Age 92 | The default resolves to the later of age 92 or five years after the calculation retirement age. It does not change the scenario’s end date. |
| Before calculation retirement | 3.7% nominal wage inflation | Read from the scenario’s wage-inflation setting and used to convert a future Australian super value into present value before the calculation retirement age. |
| From calculation retirement | 2.5% consumer inflation | Read from the scenario’s consumer-inflation setting and used for the present-value conversion from the calculation retirement age. |
| Account fees | None | The model deducts only the configured fee type. A saved account may instead use a percentage fee or a fixed fee. |
| Capital growth | 6% compound APR | A user-editable long-term modelling assumption, not a prediction or product return. |
| Earnings or yield | 2.5% compound APR | A user-editable modelling assumption. The capital-growth and earnings split is a modelling convenience. |
| Concessional contribution tax | 15% starting assumption | A simplified scenario setting that does not capture every exception or individual tax circumstance. |
| Starting concessional cap | A$30,000 | A statutory starting assumption that can change over time and may differ between saved scenarios. |
How these values are used
New Australian scenarios start with 3.7% nominal wage inflation and 2.5% consumer inflation in the main inflation settings. The Australian super present-value calculation reads those scenario-level values, and the user can change them.
New Australian super accounts start with the example account values shown above. Saved accounts may retain older values or contain values entered by the user. Always review the live scenario and account settings before interpreting a result.
Significant limitations
Only the fee model configured on the account is deducted. Omitted fixed administration, investment, advice, or insurance costs will overstate the projected balance. The model also simplifies tax, preservation-age, contribution-cap, and condition-of-release rules. Actual outcomes may differ materially.
Age 67 is a calculation assumption, not an age when super must be accessed. The account’s withdrawal-access rule remains separate, and actual access depends on Australian law and the user’s circumstances.
The calculator is not intended to be relied on to make a decision about a financial product. Consider obtaining advice from an Australian financial services licensee before making financial decisions. See the general calculator disclaimer for the product-wide assumptions and limitations.
Keep the working beside the model.
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For related planning concepts, continue in Financial Independence is a Number or Coast FIRE.