Take a 35-year-old with $150,000 already in Super, earning $100,000, projecting to the standard retirement age of 67 at a 7 percent annual return. That is 32 years of growth. The employer Super Guarantee is 12 percent of $100,000, which is $12,000 a year going into the fund. Inside Super, concessional contributions are taxed at 15 percent, so the amount actually invested is 85 percent of that, about $10,200 a year. Each year the calculator grows the balance by 7 percent and then adds the $10,200, compounding the result. Over 32 years that builds to roughly $2,431,516 by age 67. The figure looks large because three decades of compounding does most of the heavy lifting, far more than the contributions alone.
How it is calculated
The projection compounds your Super year by year from your current age to 67. It starts with your current balance, applies the employer Super Guarantee at 12 percent of salary, and reduces that contribution by the 15 percent contributions tax that applies inside Super, so 85 percent of each year's SG is actually invested. For every year remaining, it grows the running balance by your chosen annual return and then adds the net contribution. The model uses simplified assumptions: a constant salary, a constant return, and today's 12 percent SG rate held flat. Real outcomes vary with market swings, career breaks, salary growth, fees, and rule changes, so treat the result as a directional guide rather than a guarantee. Adding voluntary or salary-sacrifice contributions on top would lift the final figure further.
Frequently asked questions
Is the projection realistic?
Uses simplified assumptions: constant salary growth, constant return, current contribution caps. Real outcomes vary with markets, career breaks, and rule changes. Treat as directional.
What is the Super Guarantee rate in 2025/2026?
The Super Guarantee rate is 12 percent of ordinary time earnings from 1 July 2025 onward. This rate is legislated and employers are required to pay it at least quarterly into a complying super fund. Employees cannot opt out of receiving SG contributions.
How is Super taxed inside the fund?
Concessional contributions, which include employer SG and salary sacrifice amounts, are taxed at 15 percent inside the fund, well below the top personal income tax rate. Investment earnings inside a super fund in accumulation phase are also taxed at a maximum of 15 percent. Once you reach preservation age and convert to a retirement-phase account, earnings become tax-free up to the $1.9 million transfer balance cap.
What is the concessional contributions cap for 2025/2026?
The concessional contributions cap is $30,000 per financial year for 2025/2026. Concessional contributions include employer SG, salary sacrifice, and personal contributions you claim a tax deduction for. Contributions above this cap are included in your assessable income and taxed at your marginal rate, with a 15 percent offset to account for the tax already paid inside the fund.