Project the growth of your superannuation balance and estimate your monthly income in retirement.
Rates as of Q2 2025 (example)
This calculator projects how your superannuation balance could grow between now and your planned retirement age, based on your current super balance, total monthly contributions (employer plus any voluntary amounts), and an expected annual return. It then estimates a monthly retirement income using the 4% rule and compares it to your desired monthly income — helping you understand whether your current super trajectory is on track for the retirement income you want.
This calculator compounds super contributions monthly, applying the expected return each month to the growing balance. The 4% rule is then applied to the projected balance to estimate a sustainable annual withdrawal, converted to a monthly income figure.
Formula: Each month: Balance = Balance × (1 + Monthly Rate) + Monthly Contribution, where Monthly Rate = Annual Return ÷ 12, over (Retirement Age − Current Age) × 12 months. Estimated Monthly Income = (Projected Balance × 4%) ÷ 12. Monthly Gap = Estimated Monthly Income − Desired Monthly Income.
Example: Age 30, current super balance A$30,000, total monthly contributions A$600 (including employer SG at 11.5% of salary plus voluntary), expected return 7% (example rate), retirement age 67, desired monthly income A$4,500: Projected balance ≈ A$1,654,822. Of this, contributions total A$296,400 and investment growth is approximately A$1,358,422. Estimated monthly income under 4% rule ≈ A$5,516.07 — a surplus of A$1,016.07/month above the A$4,500 target. (Note: returns are not guaranteed and actual outcomes will vary.)
Superannuation is Australia's compulsory retirement savings system, requiring employers to contribute a minimum percentage of ordinary time earnings (the Super Guarantee, or SG) into each eligible employee's super fund. The SG rate is legislated to increase gradually — 11.5% from 1 July 2024, rising to 12% from 1 July 2025. Contributions and earnings within a super fund are taxed at a concessional 15% rate (compared to marginal tax rates of up to 47% including Medicare levy), making super an exceptionally tax-effective savings vehicle for most working Australians. Super funds cannot be accessed until you reach your preservation age (currently 60 for those born on or after 1 July 1964) and meet a condition of release (such as retirement or reaching age 65). In the pension phase — after converting a super balance to an account-based pension — investment earnings are tax-free, further enhancing the compounding effect. The Association of Superannuation Funds of Australia (ASFA) publishes the ASFA Retirement Standard — benchmarks for "comfortable" and "modest" retirement standards. As of mid-2024, the ASFA comfortable standard for a couple requires approximately A$73,337/year (about A$6,111/month) and for a single person approximately A$51,278/year (about A$4,273/month). These benchmarks can guide what to enter as your desired monthly income. The ATO's mySuper portal and APRA's super fund performance data (heatmaps) allow Australians to compare their fund's fees and performance against benchmarks — an underperforming or high-fee fund can significantly reduce your projected balance over decades.
The Super Guarantee is the minimum percentage of an eligible employee's ordinary time earnings that employers must contribute to their superannuation fund. The SG rate is set by legislation and increases gradually: 11.5% from 1 July 2024, and 12% from 1 July 2025 (where it is currently legislated to remain). The SG applies to ordinary time earnings — it is generally paid on top of your salary, not out of it, though some salary packages are quoted inclusive of super (always check). Casual, part-time, and most other employees are eligible for the SG once they earn above A\$450/month (the threshold was removed in 2022; now all eligible employees receive SG regardless of earnings amount).
Contributions made into super (concessional contributions — employer SG and salary-sacrifice) are taxed at 15% within the fund, rather than your marginal income tax rate (which can be up to 47%). Earnings within a super fund in the accumulation phase are also taxed at a maximum of 15% (or 10% for capital gains on assets held over 12 months). In the pension phase (account-based pension from age 60), earnings and withdrawals are generally tax-free. This means super savings compound with a much lower tax drag than investments held personally, making it significantly more efficient for long-term retirement saving.
Concessional contributions (employer SG plus salary sacrifice plus personal deductible contributions) are capped annually. The cap for 2024-25 is A\$30,000 per year. Exceeding this cap results in the excess being taxed at your marginal rate (plus an interest charge), so it is important to track total concessional contributions each financial year. Non-concessional contributions (personal after-tax contributions) have a separate, higher cap — currently A\$110,000 per year, with a bring-forward provision allowing up to A\$330,000 over three years for those under 75.
Superannuation is generally preserved (locked away) until you meet a condition of release. The primary condition of release is reaching your preservation age and retiring — preservation age is 60 for anyone born on or after 1 July 1964. From age 65, you can access super regardless of employment status. Other conditions of release include permanent incapacity, terminal medical condition, severe financial hardship (with restrictions), and compassionate grounds. From age 60-65, a "transition to retirement" (TTR) income stream allows limited withdrawals while still working.
For most Australians, salary sacrifice contributions to super are one of the most tax-effective ways to save for retirement. Each dollar of salary sacrificed is taxed at 15% in the fund rather than your marginal rate — for someone on a 34.5% effective marginal rate (taxable income A\$45,001-A\$120,000 including the 2% Medicare levy), this saves 19.5 cents in tax per dollar contributed. The trade-off is that salary-sacrificed funds are locked away until retirement. For high-income earners (above A\$250,000 total income), a 30% "Division 293" tax applies to concessional contributions instead of 15%.
Most super funds offer a range of investment options from conservative (cash and bonds, low risk, low return) to aggressive (mostly shares, higher risk, higher expected long-run return). The default "MySuper" option for most funds is a balanced or lifecycle option (the latter shifting from growth to conservative as you approach retirement). For members with a long time horizon (20+ years to retirement), research generally supports holding a higher allocation to growth assets (shares, infrastructure) to maximise long-run compounding — but the right allocation depends on your personal risk tolerance. Compare fund investment options and fees using APRA's super fund heatmap or independent comparison tools.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The expected return rate used is an example only — actual superannuation investment returns vary and are not guaranteed; past performance is not a reliable indicator of future performance. This calculator does not account for taxes on contributions or earnings within super, fund fees, the Age Pension, inflation, or changes in superannuation rules. Superannuation and retirement planning is complex — consult a qualified financial adviser for advice specific to your circumstances.