What is the transition to retirement calculator?
The purpose of the calculator is to show how starting a transition to retirement
pension could impact your income and tax situation for one year.
The calculator will allow you to compare:
- Not starting a transition to retirement pension with
- Receiving income from a transition to retirement pension and your salary, and also
the effect of salary sacrificing some of your income back into super.
What does the transition to retirement calculator NOT do?
The transition to retirement calculator:
- provides no guarantee that the results will represent the actual outcome
- provides no guarantee that any of the assumptions will be suitable for your particular
- does not provide any warranty of reliability or accuracy of the information provided
- should not be relied upon as a substitute for financial planning advice.
Inputs and the assumptions
We have assumed that:
- Those using the calculator are in accumulation style super funds. If you have defined
benefit super, you should obtain personal financial advice.
- The Income Tax Rates are for residents of Australia for tax purposes. If you were
a non-resident during the year, you should seek assistance from a financial adviser.
- The Medicare levy is applied. You may be eligible for additional exemptions.
- The Medicare levy surcharge has not been applied in these calculations.
- Tax on Excess Concessional Contributions is fixed at 32.00% (plus the 15%
contributions tax already deducted). Your actual Excess Concessional
Contributions tax may be lower as it will be taxed at your marginal tax rate
plus Medicare levy plus any applicable excess concessional contribution charge.
- The Division 293 tax has not been applied in these
calculations (this is only applicable for very high income individuals).
- Fees and investment returns are omitted in this calculator.
- If you turn 60 during the financial year a portion of your pension is tax-free.
Before making financial decisions based on the information provided by the calculator,
the Trustee recommends you seek separate and independent professional financial
advice. A financial adviser can take into account all your individual financial
circumstances and requirements.
© Russell Investment Management Ltd. 1995-2008. All rights reserved.