Notes:

• The calculator lets you test, or model, how your choices may affect your super over the long term. Factors such as investment earnings, salary inflation and contributions are assumed to grow in a steady, predictable fashion as described in these notes. These figures are therefore indicative only and changes in any one of the assumptions may have a significant effect on the projected outcomes.
• It is not uncommon for actual benefits to vary from projections due to actual crediting rates being different to those projected. As an example, a rate 1% p.a. higher or lower than the rate chosen could result in a benefit approximately   higher or lower than that projected. You may wish to return to the calculator and adjust the crediting rate to more accurately see the effect of differing returns.
• The net crediting rate default of 7.5% p.a. is based on guidance provided to consumers by the Australian Securities and Investment Commission with their calculators. This guidance suggests a projection of 8.5% p.a. for funds with similar asset allocations to the QSuper Balanced option. An allowance has been made for QSuper fees (the Balanced option fee of 0.55% p.a.) and tax (7% p.a.) and then rounded to give the default of 7.5% p.a. This rate is used to project all accumulation style monies to retirement. At retirement, 0.5% p.a. is added to the crediting rate to reflect the fact there is no tax within a superannuation fund on assets used to purchase retirement pensions.
  • Members can change this default to project at a rate they choose as the net crediting rate (an after tax and fees rate). Members may wish to alter the default to take into account higher or lower earnings or fees than those assumed. The input rate will be used to project earnings to retirement. At retirement, 0.5% p.a. will be added to the input rate, to reflect the "no tax" position of the assets in retirement as described above.
• By default, results are shown in "today's dollars" so that they are consistent with today's living standards. You may choose to show results in "future dollars", which allow for inflation at the rate of 3.5% p.a. however you need to bear in mind that "future dollars" will not have the same purchasing power as currently.
• Inflation and salary increases are taken to be constant for the whole period. Crediting rates are also taken to be constant (apart from the 0.5% change at retirement described above).
• Indexation of salary and superannuation contributions is applied annually. A salary inflation rate of 3.5% has been used to achieve this.
• Chosen working status assumed to be continuous to retirement and inputs and results are based on whole number of years.
• Taxation of benefit payments has not been taken into account nor has provision been made for any existing surcharge debt.
• No allowance has been made for any Centrelink entitlements retirees may be entitled to.
• No allowance has been made for any super co-contribution a member may be entitled to.
• All employer and employee contributions have been taxed at 15% to take into account contributions tax. In effect this means all employee contributions are assumed to be salary sacrificed making them concessional contributions. For members with a Defined Benefit account, standard contributions have been "grossed up" to account for this taxation.
• Employer contributions are dependant on the working status chosen. They are 0% if "not working", 9% if "working elsewhere" and at the rate indicated if "working for the State Government".
• Insurance premiums have been projected for those members with an Accumulation account when "working in state government" has been chosen. Death and total and permanent disability premiums are calculated as follows:

  • Member contribution rate	Units of cover	Cost
    0%	2 units	$1.00/week/unit
    2% - 5%	4 units	$1.00/week/unit
    3% - 6% (police officers only)	4 units	$2.75/week/unit

  • Premiums are indexed each year by salary inflation.
  • Income protection premiums have been projected for members making 2-5% standard personal contributions. Premiums are calculated as a percentage of salary dependent on the member's age. Premium rates applicable from 1 July 2006 have been used and the calculator indexes these premiums each year by salary inflation.
• Where a QSuper Defined Benefit balance is supplied, it is assumed to grow with salary inflation. Future standard personal and employer contributions will purchase multiple at standard QSuper rates. Voluntary contributions are projected as part of the Accumulation account.
• Where an Accumulation account balance is supplied, it is assumed to grow with the net crediting rate.
• Where a Deferred retirement benefit balance is supplied, it is assumed to grow with salary inflation of 3.5% to age 55, then with the net crediting rate to retirement.
• The annual gross retirement income is calculated as if taken in equal proportions over years in retirement, allowing for salary inflation, and drawn in the middle of each year. It is important to recognise this income is not guaranteed for life.
• This calculator does not cater for members who have had a salary reduction, are paying catch up contributions or who have employer contribution rates other than standard QSuper rates.
• The calculator is not designed for comparing defined benefit and accumulation accounts.
• This calculator will underestimate benefits for Police Officers paying contributions of less than 6%, Queensland Rail staff paying less than 2% and members accruing multiples higher than 0.21 (due to their previous transfer from State Super). The amount by which benefits are underestimated could be significant over longer periods.
• It is recommended members regularly update their projections. The calculator should not be relied on for making a decision about a particular product and we recommend you consider personalised financial advice before making financial decisions. QSuper also recommends you read our disclaimer.