Retirement Income Simulator

Today we released the updated Retirement Income Simulator for the 2016-17 financial year. There were no changes to the calculations, just parameter updates as follows:

  • Co-contribution eligibility income threshold
  • SG maximum contributions base
  • Age pension income test and deeming thresholds
  • March quarter 2016 ASFA Comfortable retirement standard

Depending on the outcome of the election and how far the Coalition super package gets, we may need another legislation-driven release in the next few months.

The one other thing we changed in this release was the living standards improvement margin. This is the amount added to price inflation to give:

  • an estimate of wage growth, and
  • the rate at which we discount future dollars to today’s dollars

We have reduced this margin to 1%, so that our long-term estimate of community wage growth is now 3.5% p.a. This is consistent with Mercer Investment Consulting research into wage expectations. The visible outcome of this change in the RIS is that estimates of future super amounts are now higher in today’s dollars than they were before. In recent times our expectations of investment returns have been falling as well; this change brings wage growth into line with expected returns.


Tags: retirement-planning updates inflation

Tag Cloud


updates (10) age-pension (6) design (2) retirement-planning (11) pdf (2) terms-and-conditions (1) government-co-contribution (1) asfa-retirement-standard (2) user-interface (2) retirement-age (1) compare-scenarios (1) regulations (1) ASIC (2) career (1) asfa-comfortable-standard (1) robo-advice (1) budget (4) inflation (2) asic (1) regulation (2) income-tax (1) 2016 (1) transfer-balance-cap (2) 2017 (1) fees (1) self-employed (1) feature (1) contribution (1) homeloan newfeature mortgage (1) regulation inflation assumptions (1)


Posts by Quarter

2019 q3

Deeming rate changes July 2019
Calculator update July 2019

2019 q2

Inflation update
Home loan feature

2017 q3

New enhancement for the self-employed
Calculator update July 2017

2017 q1

Calculator Updates for March 2017

2016 q4

Calculator Updates for December 2016
Inflation update
Calculator updates for October 2016

2016 q3

Modelling inflation in the simulator
Calculator updates for July 2016

2016 q2

Federal Budget 2016
Calculator updates for April 2016

2016 q1

Career changes in the Retirement Income Simulator
Changes to online calculator regulations

2015 q4

Calculator updates for December 2015
Alternative input methods for the Retirement Income Simulator
Retirement Income Simulator improvements for the retirement phase

2015 q3

Age Pension and ASFA Retirement Standard changes
How much super do you need?
Calculator Updates for July 2015

2015 q2

Congratulations to Media Super
Infographics for simplified retirement planning
Retirement Income Simulator gets a responsive redesign