The modelling for this commercial is based on the following assumptions: starting age 25, retirement age 65, starting salary $45,000, starting balance $15,000. This 40 year calculation uses a sample of 32 super funds (Industry SuperFunds and Retail Super Funds) to illustrate the value of super over a working life. Refer below for information on fees and all other assumptions.
The investment options included in the Retirement Dollars modelling are:
- AMP CustomSuper - AMP Balanced Growth
- AMP SuperLeader - SuperLeader Growth
- Aon Master Trust - Balanced Active
- AUST(Q) - Default Option
- ASGARD Employee Super - SMA Balanced
- AustralianSuper - Balanced Option
- AustSafe Super - Balanced
- AXA Super Directions Business - Multi-manager Balanced
- BT Lifetime Super Employer - BT Multi-manager Balanced
- CareSuper - Balanced
- Cbus - Growth
- Colonial FirstChoice Employer - FirstChoice Moderate
- Energy Super - Balanced
- First Super - Balanced
- HESTA - Core Pool
- HOSTPLUS - Balanced
- IOOF Portfolio Service Employer - IOOF MultiMix Balanced Growth Trust
- legalsuper - Growth
- LUCRF Super - Balanced
- Media Super - Balanced
- Mercer Super Trust Corporate - Mercer Growth
- MLC MasterKey Business - Horizon 4 Balanced Portfolio
- MLC Navigator Employer Super - Pre Select Growth Fund
- MTAA Super - Balanced
- NGS Super - Diversified
- OnePath Corporate Super - Optimix Balanced
- Optimum - Ibbotson Growth Trust
- REI Super - Trustee Super Balanced
- Spectrum Super - United Capital Growth Fund
- Suncorp WealthSmart Business - Suncorp Growth Portfolio
- TOWER ARC Corporate - TOWER Balanced Growth Fund
- TWUSUPER - Balanced
Key assumptions for modelling and calculations
3.5% per annum.
Fee Projection Modelling: Investment return of 6.825% per annum (gross of taxes and fees at 7.5%) including taxes of 9% deducted. Performance (Net Benefit) Modelling: Modelling is based on actual reported returns over the stated period.
When are investment returns credited to members’ accounts?
Superannuation Guarantee Contribution
9% of Gross Salary. Assumes no salary sacrifice or voluntary contributions.
When are contributions assumed to be made?
Quarterly in arrears with 4th quarter contribution being received on the last day of the year.
When are fees assumed to be deducted?
A tax rebate of 15% is assumed on fees deducted from members’ accumulation accounts.
Employer asset size
Members’ accumulation accounts are assumed to be in a ’small’ employer size of $150,000 in funds under management (FUM) at the start of calculation. Employer size FUM increases at 11.6% per annum.
2.5% per annum
All fees are those published in sample funds’ most recent product disclosure statements or other formal disclosures that are publicly available at the time of the calculation (30 September 2012). The reference to ‘Average fees’ in the advertisement refers to the average of chargeable administration, asset management and base investment management fees for the 32 funds listed above. Contribution fees, entry fees, exit fees, additional adviser fees or any other fees charged are excluded from this model.
No deductions made for insurance premiums.
Date of modelling
Performance and Fee Projection Modelling: 30 September 2012
Key assumptions are in-line with modelling provided on the MoneySmart website provided by ASIC, with the exception of average fees and average returns.