The Benefits of Using A Superannuation Calculator

View PDF | Print View
by: B.Darling
Total views: 24
Word Count: 485
Date: Tue, 16 Aug 2011 Time: 3:26 PM
0 comments

It's not news that many Australians will fall short of adequate retirement money when they reach the age of 65. How do you fare? If you're unsure, it's something you need to start planning as soon as possible. Some people make the assumption they only need to start paying serious attention to how much super they have when they're in their 40's or 50's. The truth is that it's never too early to start planning for your retirement. Wise decisions you make today could mean financial security for you (and possibly your spouse and other family members) tomorrow.

If you want a quick tool to give you an accurate assessment of where you stand in your superannuation savings, go to your super fund's website and see if they have a superannuation calculator. Superannuation calculators will typically ask for some basic financial information from you and give you some projected information on a graph or chart. For most superannuation calculators, all you need is your most recent statement from your superannuation fund that tells you what your balance is.

Once you input your age, your current super balance and any ongoing contributions you expect from an employer or your own contributions the superannuation calculator will tell you how much money you might expect to have in your super fund by the time you retire and how long the money might last you after you retire. You may also be given options to see how it could be different by contributing more into your super or earning a higher salary. Adjusting these options may show an increase or decrease in the money you'll have to live on after you retire.

It's important not to take drastic financial action based on the results you get from a superannuation calculator. It's always wise to seek the advice of a financial adviser or financial planner first.

Superannuation calculators can give a good indication on the health of your super funds. A good example of this is if the superannuation calculator shows that your super will last you only a few years after you retire. You may estimate that you will live longer and will not be able to rely on another source of income. It may then be beneficial for you to look at a salary sacrifice calculator to show how you could increase your super balance.

If the 9% or more that your employer is contributing to your super fund each pay is not sufficient, you may decide to make contributions from your salary through the use of salary sacrifice. In this situation it is wise to use a salary sacrifice calculator to calculate the appropriate amount you wish to sacrifice into your super. Most calculators will also display the potential tax implications depending on what you input.

About the Author

Looking for a superannuation calculator? With a large range of superannuation calculators tailored to specific areas, Australian Enterprise Super has all your number crunching needs.