How to Calculate Superannuation? All you Need to Know

Do you know how to calculate superannuation? In order to prepare for retirement, you must first understand how to calculate superannuation. You should figure out how much to put into your super, how much it will be worth when you retire, and how long your super will endure. Each of them can be determined straightforwardly.

If you work, your employer has to make Superannuation Guarantee (SG) contributions to your superannuation account. Ten percent in the normal SG contribution percentage. This means that your employer must contribute ten percent of your salary to your superannuation account at least once a quarter.

For example, if your annual salary is $60,000, you will earn about $15,000 per quarter, implying that your employer will contribute $1,500 per quarter to your super.

SG contributions are not paid to self-employed workers. In truth, self-employed workers are not required to contribute to their superannuation funds. Superannuation contributions are made at their leisure. But how to calculate superannuation? 

How to Calculate Superannuation?

The sum of contributions is added to the earnings, then multiplied by the number of years to retirement, the formula for calculating your super balance at retirement. You can choose to include simply your employer’s SG contributions in your computation, or you can include voluntary contributions like salary sacrifice or after-tax payments.

If you are self-employed, you may choose to make personal concessional or non-concessional contributions. SG contributions aren’t paid to self-employed workers. Self-employed workers are not required to contribute to their superannuation. Contributions to superannuation are made at the whim of the individual.

The way your super is invested, or the investment option you choose, determines the investment earnings in your super accumulation account. Most super funds offer a choice of investment alternatives, spanning from conservative (low risk/low return) to proactive (high risk/high potential return).

If you don’t specify how you want your retirement savings invested, your super fund will make the decision for you. It is believed that this is one of the most common blunders made by people, especially the younger ones.

Your investment return will have a long-term return aim, which you can learn about by reading the information documents provided by your super fund or investment manager. Depending on your risk tolerance, your average long-term investment return expectations will typically range from 1 percent to 10 percent p.a. (cash and shares).

Several super funds offer pre-mixed investment alternatives, such as defensive, moderate, controlled, development, and proactive, each with a risk profile and predicted returns.

Finally, determine how long your retirement savings will endure. This can be accomplished in several ways. The amount is withdrawn from your super each year in income streams or lump amounts and fees, which affect how long your super will last.

This computation can be done using a spreadsheet program like Microsoft Excel or a superannuation calculator.


For many people, a pension can help meet living expenses while also decreasing the quantity of superannuation you use every year, extending the life of your super. This is why a retirement calculator should be used, as it includes Age Pension income in the calculations as it can give more precise numbers. 

If your superannuation runs out too quickly, consider working longer, increasing your super contributions, or using a few retirement planning options. These are the methods for calculating super, ranging from contributions to predicting retirement balances to the lifetime of your super. How much super do you need, and how long will it last after retirement?

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