Superannuation calculator
Friday September 12, 2008
Superannuation calculator use can be misleading if you do not know what you are doing when planning for your superannuation fund. A big mistake many people make is to assume every superannuation calculator is the same. This is incorrect, as the differences between different superannuation calculator tools can be immense.
It is also important to realise that much of what a superannuation calculator can calculate is an estimate. For instance, if you use a superannuation calculator that allows you to adjust the rate of return on your superannuation fund, it is important that you enter the usual returns of your superannuation fund rather than the returns of the current year. This is because how a superannuation fund works is that it should provide steady and reasonably high returns on your money over a period of many years. Some years it will be higher and other years lower. A superannuation calculator can only make an estimate that is as accurate as the average rate of returns for your superannuation fund.
A superannuation calculator is very unlikely to take fees into account as well, and this could throw its estimate out. The annual fees for an industry superannuation fund will differ to those of a self managed superannuation fund and other types of superannuation funds, and it may also vary depending on the number of transactions carried out for your superannuation fund. If the superannuation calculator you use allows you to enter in the usual fees for your superannuation fund, be aware that these would likely change over time.
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