Keep up-to-date with the latest improvements to all of our Retirement Income Simulator products
Today we released the updated Retirement Income Simulator for the 2023-24 financial year. There were no changes to the underlying calculations, just parameter updates as follows:
In addition, disclosure relating to these parameters was updated
Tags:
update
Further to our post on 14 July, the required regulatory changes were released in an update that included the following changes:
The changes that will be most obvious to users of the Retirement Income Simulator are in relation to retirement adequacy. To speak meaningfully of a level of retirement income, you need to index the income at the same rate you deflate it. ASIC now requires that retirement income is deflated with price growth; we have therefore changed the indexation of retirement income to price growth, instead of wage growth. This will give the appearance that retirement incomes are higher, last longer or both. In reality this is because retirement incomes grow more slowly under the new approach, and will not keep pace with improvements in living standards enjoyed by the wage earning community.
A related change is the presentation of the Age Pension. In reality, the Age Pension is indexed with the higher of wage and price inflation; in the long term this is wage inflation. Hence in the Simulator, you will see the Age Pension growing in real terms even after the maximum entitlement is reached. This is because it increases with wage growth, but is being deflated with price growth.
Tags:
regulation
On 30 June 2022, ASIC released Corporations (Superannuation Calculators and Retirement Estimates) Instrument 2022/603 and Regulatory Guide 276: Superannuation forecasts: Calculators and retirement estimates. (Superannuation calculators have been removed from the existing generic calculators instrument.) The majority of the changes are focused on retirement estimates, but there are some changes for superannuation calculators. Key points are:
There is a six month transition period to the new regulations, which must be complied with by 1 January 2023. We are expecting to have the Retirement Income Simulator updated well before that.
Tags:
regulation
Today we released the updated Retirement Income Simulator for the 2022-23 financial year. There were no changes to the underlying calculations, just parameter updates as follows:
In addition, disclosure relating to these parameters was updated
Tags:
update
Today we released the updated Retirement Income Simulator for the 2021-22 financial year. There were no changes to the underlying calculations, just parameter updates as follows:
In addition, disclosure relating to these parameters was updated
Tags:
update