What is superannuation in Australia?

Superannuation (or super) is Australia’s compulsory retirement savings system. Employers must pay a percentage of your ordinary time earnings into a super fund, and the money is invested until you retire or meet a condition of release.

How is Superannuation Guarantee (SG) calculated?

SG is calculated as a legislated percentage of your ordinary time earnings (OTE). For example, if the SG rate is 11.5% and your OTE is $80,000, your employer must contribute $9,200 for that year, subject to contribution caps and eligibility rules.

How can I estimate my super balance at retirement?

To estimate your retirement balance, start with your current super balance, add projected annual contributions (employer SG plus any voluntary contributions), and apply an assumed net investment return each year until retirement. This calculator automates that projection for you.

What investment return should I assume for my super?

There is no single correct number. Historically, balanced options have often returned around 5–7% p.a. before inflation, while conservative options may return less and high-growth options more but with higher volatility. Many people model a conservative real return of 3–5% p.a. after fees and before tax, but you should check your fund’s long-term performance and consider financial advice.

Is this superannuation calculator financial advice?

No. This tool is for general information and educational purposes only. It uses simplifying assumptions and does not consider your full circumstances. For personalised advice, speak with a licensed financial adviser or your super fund.

Superannuation Calculator & Guide (Australia)

Estimate your Australian superannuation (super) balance at retirement, understand how Superannuation Guarantee (SG) contributions are calculated, and see how different investment returns and voluntary contributions can change your future balance.

1. Project your super balance at retirement

Current age

Planned retirement age

Current super balance (A$)

Annual before‑tax salary (A$)

SG rate (% of salary)

Use the legislated minimum or your actual employer rate.

Pre‑tax (salary sacrifice) per year (A$)

After‑tax contributions per year (A$)

Investment return (p.a.)

Average annual return before tax, after fees.

Annual fees (% of balance)

0.8

Salary growth (p.a.)

2.5

Projected super at retirement

Projected balance at retirement

A$0

Total contributions (employer + you)

A$0

Investment earnings

A$0

Show year‑by‑year projection (approximate)

Age	Start balance	Total contrib.	Net return	End balance

This is a simplified projection. It assumes contributions are made evenly through the year, constant percentage rates, and ignores tax nuances and government co‑contributions. Real outcomes will differ.

2. Superannuation Guarantee (SG) contribution calculator

What is superannuation?

Superannuation (often shortened to super) is Australia’s compulsory retirement savings system. While you are working, your employer must pay a percentage of your earnings into a super fund. The money is invested over decades and is generally only accessible when you retire or meet a condition of release.

Super is designed to supplement or replace the Age Pension, giving you more financial independence in retirement. Because contributions and investment earnings inside super are usually taxed at concessional rates, it can be a very tax‑effective way to save.

How Superannuation Guarantee (SG) works

The Superannuation Guarantee (SG) is the minimum amount your employer must contribute to your super if you are eligible. The SG rate is a percentage of your ordinary time earnings (OTE), up to a legislated maximum contribution base.

Basic SG formula

SG contribution = OTE × SG rate

Example: If your OTE is A$80,000 and the SG rate is 11.5%, your employer must contribute:
80,000 × 0.115 = A$9,200 for that year (subject to caps and eligibility rules.

Employers usually pay SG at least quarterly, but many pay it in line with your regular pay cycle. If you think your SG is not being paid correctly, you can check your payslips and super fund transactions, then contact your employer or the ATO.

Projecting your super balance at retirement

Your retirement balance depends on four main drivers:

Time in the system – how many years you contribute before retirement.
Contribution level – employer SG plus any salary sacrifice or after‑tax contributions.
Investment returns – how your chosen investment option performs over time.
Fees and taxes – administration, investment fees, and tax on contributions and earnings.

Simplified projection model (annual compounding)

Let:

B₀ = current balance
Cₜ = total contributions in year t (employer + you)
r = assumed annual investment return (decimal)
f = annual fee rate (decimal)

Then each year:
Bₜ₊₁ = (Bₜ + Cₜ) × (1 + r − f)

The calculator above automates this process, adjusting for salary growth and showing how much of your final balance comes from contributions versus investment earnings.

Typical assumptions you might use

Investment return: 5–7% p.a. before inflation for a balanced option; lower for conservative, higher for high‑growth but with more volatility.
Fees: 0.5–1.0% p.a. of your balance, depending on your fund and investment option.
Salary growth: 2–3% p.a. to reflect inflation and career progression.

Types of super contributions

1. Employer SG contributions

These are compulsory contributions your employer must pay if you are eligible. They are usually concessional contributions, taxed at 15% in the fund (or more if you are a very high‑income earner).

2. Salary sacrifice (pre‑tax) contributions

You can ask your employer to redirect part of your before‑tax salary into super. This can:

Increase your retirement savings.
Potentially reduce your income tax if your marginal tax rate is higher than the 15% contributions tax.

Salary sacrifice plus employer SG count towards your concessional contributions cap. If you exceed the cap, extra tax may apply.

3. After‑tax (non‑concessional) contributions

You can also contribute from your take‑home pay. These contributions are not taxed on the way in (because you already paid income tax), but they count towards a separate non‑concessional contributions cap.

In some cases, you may be eligible for a government co‑contribution if your income is within certain thresholds and you make personal after‑tax contributions.

Choosing a super investment option

Most funds offer several investment options, such as:

Conservative: More defensive assets (cash, bonds), lower expected returns, lower volatility.
Balanced: Mix of growth and defensive assets, moderate risk/return.
Growth / High growth: Higher allocation to shares and property, higher expected returns but larger ups and downs.

The right option depends on your risk tolerance, time to retirement, and overall financial situation. Many people choose higher‑growth options when they are younger and gradually de‑risk as they approach retirement, but there is no one‑size‑fits‑all approach.

Interpreting your results

Use the projection to explore questions like:

“What if I salary‑sacrifice an extra A$50 per week?”
“How much difference does a 1% higher investment return make over 30 years?”
“What happens if I retire 5 years earlier or later?”

Remember that projections are not guarantees. Markets fluctuate, rules change, and your personal circumstances may evolve. Treat the calculator as a planning tool, not a promise.

Limitations & disclaimer

This calculator:

Uses simplified assumptions and annual compounding.
Does not fully model tax on contributions and earnings, insurance premiums, or all ATO thresholds and caps.
Does not account for changes in legislation, Age Pension entitlements, or your full financial situation.

It is provided for general information and educational purposes only and is not personal financial advice. Consider seeking advice from a licensed financial adviser or your super fund before making decisions.

Frequently asked questions about superannuation

When can I access my super?

Generally, you can access your super when you reach your preservation age and retire, or when you turn 65 (even if still working). There are limited circumstances where you may access it earlier, such as severe financial hardship, specific medical conditions, or under the First Home Super Saver Scheme, subject to strict rules.

What happens if my employer doesn’t pay my SG?

If you suspect underpayment:

Check your payslips and your super fund transactions.
Raise the issue with your employer or payroll team.
If unresolved, you can lodge an enquiry or complaint with the ATO, who can investigate and pursue unpaid super.

How often should I review my super?

Many people review their super at least once a year, or when major life events occur (new job, pay rise, buying a home, starting a family, nearing retirement). Key things to check include:

Your investment option and long‑term performance.
Fees and insurance premiums.
Whether your contact details and beneficiaries are up to date.