Keep up-to-date with the latest improvements to all of our Retirement Income Simulator products
We've had feedback about the limitations of the Simulator in relation to the self-employed. This week we released an enhancement that allows you to indicate that you (or your spouse/partner) are self-employed. Look for it on the Contributions panel. Selecting Yes will remove the Employer contributions slider and assumed employer contributions, allowing you complete control over contributions.
We're always happy to have feedback on any improvements.
On 1 July we released the updated Retirement Income Simulator for the 2017-18 financial year. There were no changes to the underlying calculations, just parameter updates as follows:
Our February release included the important updates to incorporate the transfer balance cap and new contribution caps.
Back in June some may have noticed a change in the presentation of fees on the Assumptions panel. This achieved two objectives:
Today we released an update that, on retirement, limits the amount transferred to an account-based pension to the $1.6m transfer balance cap. The transfer balance cap is indexed with CPI, so will reduce relative to expected salary growth.
During retirement phase, any super balance that exceeds the transfer balance cap at retirement will remain in an accumulation account, separate from the super pension account.
We have updated the algorithm to meet lump sum and income requirements from the accumulation account first, subject to the minimum drawdown provisions applying to account-based pensions.
This release also introduces some warning pop-ups when you exceed the concessional cap or the transfer balance cap.
Today we released an update that allows for the Budget legislation passed late November. In particular:
We have applied these measures from this release (even though they are effective 1 July 2017) as these will be the conditions under which most users will be planning for retirement.
Note the $1.6m transfer balance cap limiting the amount able to be transferred to an account based pension is more complex and will be included in the near future.
In earlier posts we discussed ASIC's pending requirement to discount all future values at 2.5% pa. Recently, an amendment to this regulation was released, exempting superannuation and retirement calculators from this requirement until July 2018. Our hope is that ASIC will use this extension to come up with a solution that provides both a level of standardisation between calculators, as well as an allowance for improvements in living standards.
In the meantime, we have developed a new feature that allows the user to control the improvement in living standards as well as the level of price inflation. Look for the Change inflation rates control on the Assumptions panel.