How to use TelstraSuper's Retirement Lifestyle Planner

Описание: Calculators that offer to predict your final super balance and retirement income are readily available through most super funds as well as ASIC’s Moneysmart service. If you’ve done any planning for retirement, you’ve probably used at least one.

Why try another? It’s always worth reviewing your progress, and the Retirement lifestyle planner by TelstraSuper has some features that set it apart from the crowd.

Most projection tools assume your balance will receive a fixed investment return each year. The results of such a projection are not very reliable because real investment returns vary each year, often by a large margin.

TelstraSuper’s planner instead uses a ‘stochastic’ approach, modelling 1,000 random possible sequences of investment returns. The sequences are generated based on the average annual return of each option as well as expected volatility (how widely returns typically vary from the average – or the standard deviation for those of you who remember your high school mathematics).

The modelling is used to calculate the age to which your retirement income is expected to last, with your chosen level of certainty. You can choose to calculate 70%, 80% or 90% probability, depending how confident you would like to be that your retirement goals will be met.

For example, if the modelling shows that you can be 80% certain your chosen level of income will last until age 88, this means that in 800 of the 1,000 modelled scenarios, retirement income lasted to age 88 or beyond.

The stochastic nature of the calculation means results should be closer to real-world outcomes, which can provide you with more confidence in your retirement plan.

Access the tool here: https://www.telstrasuper.com.au/infor...

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