Assumptions

Calculation Assumptions

All calculations assumed the superannuation interest is held in an accumulation style account within a taxed fund (No Defined Benefits, Constitutionally Protected Funds or other Untaxed funds);
Calculation figures are shown in today’s dollars (adjusted for CPI and increases in the cost of living, assumed at 3.2% p.a.);
Inflows/Outflows (contributions, investment earnings, fees, premiums) are annualised and assumed to be deducted mid-year on that basis;
All calculations have used a run date matching the date of the example member’s birth (no part years are calculated);
Contributions assumed as SG contributions only. These have been assumed to rise in line with current legislation, from 9.5% presently, increasing by 0.5% p.a. from July 1 st 2021 until reaching a rate of 12% by July 1 st 2025;
Retirement age of 67 has been assumed for all example personas, upon which point we have assumed they will commence an account-based pension, drawing their entire balance in annual instalments (rising with CPI and increases in the cost of living, assumed at 3.2% p.a.), reaching a nil balance by age 86;
No allowance for excess contribution tax is made within the calculations. Contributions tax of 15% is assumed for all SG contributions made into the example users accounts;
Tax Deductions for fees and insurance costs have been handled at the individual product level, in line with each product’s policy on returning these deductions to members (reducing the effective amount of stated gross fees by 15%);
For each platform compared, a figure for Annual Income in Retirement has been produced for the respective default investment strategies. Each of the below target returns for the default investment strategies is assumed net of investment fees and tax, but before the effect of administration fees;
- Default, being the retirement income expected of a member invested in line with each provider’s default investment offering. The standardised target return for these options will differ dependant on the underlying asset allocation of each fund’s strategy. The strategy is assumed to de-risk to a target return of CPI + 3.5% at age 55, CPI + 3.0% at age 60, and CPI + 2.5% at age 65, if it is not already at or below this mark at each respective age;
In addition to the above target returns, certain investment strategies within the platforms compared have an outperformance factor embedded within their target returns. This factor has been awarded based on our views on the likelihood of a given fund/investment strategies continuing to meet and exceed expectations, in comparison to similarly structured options available within alternative products

Deconstructing Super (E-Book)
In addition to the assumptions above, the following assumptions apply for Tables 1 and 2:

Priorities in Super – September 2021 Blog
In addition to the assumptions above, the following assumptions apply for Tables 1 and 2:

Fact Sheets

In addition to the calculation assumptions above, the following assumptions apply:

Fixed inputs used across the three client scenarios are:

SG only (10% from 1 July 2021)
No additional contributions
Insurance design = No Cover
Retirement Age = 67
Pension Escalation Rate = 3.2%
Drawdown Cease Age = 86
CPI = 2.0%

The three client member scenarios used in calculating Projected Income in Retirement in the table are:

Mitsui & Co. (Australia) Ltd engaged AXIS Financial Group in reviewing the existing employer super arrangements and clarifying which product provider might be best for Mitsui & Co. (Australia) Ltd and it’s group of companies.

AXIS Financial Group provided a concise explanation as to who might be best and why, in particular ensuring that the internal project team had the information to feel confident as decisions were made. The project team moved from arguably being daunted by the prospect of improving this particular employer funded employee entitlement and better understood how to manage super as a remuneration benefit through the detailed analysis and explanation provided by AXIS Financial Group

Antony Auliso
General Manager - Human Resources Division
Mitsui & Co. (Australia) Ltd

I want to thank AXIS Financial Group for their efforts in handling insurance claims on behalf of the employees of WesTrac. From the moment AXIS Financial Group were appointed to the task, they moved so seamlessly into position and have made sure that WesTrac is not only better serviced as a result but also more informed about claims progress. I also note the outstanding results achieved by AXIS with respect to marketing and placement of our employer super policy.

It seems nothing is a problem for the AXIS team and I would commend all employers to consider this service.

Gary Carter
Group Insurance Manager
WesTrac Pty Ltd

AXIS Financial Group’s knowledge of employer super is second to none.

DXC tasked AXIS Financial Group with consolidating multiple superannuation funds to a
single company-wide default fund. They delivered, displaying superior knowledge of their
industry, along with the highest level of service and diligence.
From start to finish – the initial analysis of our previous funds, the detailed tender process,
the transition to our new fund, and post-transition – AXIS Financial Group always made
themselves available for support.
We strongly recommend speaking to AXIS Financial Group for all matters relating to
employer super.

Michael McGoldrick
Director, Compensation Asia Pacific
DXC Technology