Superannuation Calculator (Australia)

What Is Superannuation?

Superannuation (super) is Australia's compulsory retirement savings system. Your employer is legally required to contribute a percentage of your ordinary time earnings into a super fund on your behalf. This percentage is known as the Superannuation Guarantee (SG).

As of 2025-26, the SG rate is 12% of your salary. This means if you earn A$85,000 per year, your employer must contribute at least A$10,200 into your super fund annually. These contributions, combined with investment returns over decades, form the foundation of your retirement income.

How Super Grows

Your super balance grows through three channels:

• Employer contributions -- the compulsory SG payments your employer makes each quarter. This is "free" money that grows your retirement savings without any effort on your part.
• Voluntary contributions -- additional amounts you choose to contribute, either through salary sacrifice (pre-tax) or after-tax contributions. These can significantly boost your final balance.
• Investment returns -- your super fund invests your balance across shares, property, bonds, and cash. Over long periods, compounding returns are the single biggest driver of super growth.

The power of compounding means that contributions made early in your career have far more impact than those made later. A dollar contributed at age 25 has over 40 years to grow, while a dollar contributed at age 55 has only 12 years.

Example Calculation

Voluntary Contributions

You can boost your super beyond the compulsory employer contributions in two main ways:

• Salary sacrifice (concessional) -- you arrange with your employer to redirect part of your pre-tax salary into super. These contributions are taxed at 15% in the fund, which is lower than most people's marginal tax rate. The total concessional contributions cap (employer + salary sacrifice) is A$30,000 per year.
• After-tax (non-concessional) -- you contribute from your take-home pay. These are not taxed again in the fund since you have already paid income tax. The non-concessional cap is A$120,000 per year.

Even small voluntary contributions can make a significant difference over decades. Contributing an extra A$100 per month (A$1,200/year) from age 30 to 67 at 7% return adds approximately A$200,000+ to your final super balance.

Super Investment Options

Most super funds offer a range of investment options with different risk-return profiles:

• High Growth -- 85-100% shares/property. Higher volatility, higher long-term returns (historically 8-10% p.a.). Suited for younger members with decades until retirement.
• Growth (Balanced Growth) -- 70-85% shares/property. The default option for many funds. Typical long-term return: 7-9% p.a.
• Balanced -- 50-70% shares/property. Moderate risk and return. Typical long-term return: 6-7% p.a.
• Conservative -- 20-40% shares/property, more bonds and cash. Lower volatility, lower returns (4-6% p.a.). More suitable closer to retirement.
• Cash -- 100% cash and term deposits. Lowest risk, lowest return (2-4% p.a.). Capital preservation focus.

Your investment choice should reflect your age, risk tolerance, and time until retirement. Many people start with a growth or high-growth option and gradually shift to balanced or conservative as they approach retirement.

Key Superannuation Rules

• Preservation age -- you generally cannot access your super until you reach your preservation age (60 for anyone born after 1 July 1964) and meet a condition of release, such as retiring.
• Tax on contributions -- concessional (pre-tax) contributions are taxed at 15% in the fund. Non-concessional (after-tax) contributions are not taxed again.
• Tax on earnings -- investment earnings inside super are taxed at 15%, which is significantly lower than most marginal tax rates. This concessional tax treatment is one of super's biggest advantages.
• Concessional cap -- A$30,000 per year (includes employer SG + salary sacrifice). Exceeding this cap means the excess is taxed at your marginal rate.
• Non-concessional cap -- A$120,000 per year. You may be able to bring forward up to 3 years' worth (A$360,000) in a single year under bring-forward rules.
• Super on paid leave -- employers must pay SG on ordinary time earnings, including some forms of paid leave.

How to Use This Calculator

1. Enter your current age -- your age today. The calculator projects from now until your chosen retirement age.
2. Set your retirement age -- when you plan to stop working. The default is 67, which is the current Age Pension qualifying age.
3. Enter your current super balance -- check your latest super statement or log in to your fund's website.
4. Enter your annual salary -- your gross (pre-tax) annual salary. Employer SG is calculated as a percentage of this.
5. Check the employer contribution rate -- the default is 12% (current SG rate). Some employers contribute more as part of their benefits package.
6. Add voluntary contributions -- if you salary sacrifice or make after-tax contributions, enter the annual amount here.
7. Set expected return and salary growth -- 7% return and 3% salary growth are reasonable long-term assumptions.
8. Click Calculate -- review your projected balance, the comparison scenario, and the year-by-year breakdown.