What are super projections?
Mark MacLeod avatar
Written by Mark MacLeod
Updated over a week ago

Hey Coach has projected your super fund balance at retirement age (green bar on chart) and beyond. Select a bar on the chart to see how your super balance changes over time.

Your super balance grows each year through super contributions made by your employer (super guarantee). The current super guarantee is 10% of your gross salary. Your super also grows through your super fund investment returns.

At retirement age, your employer's super contributions will stop. In retirement, you will draw down a portion of your super balance as retirement income. We have assumed your super investments will continue to grow at 3% and that you will draw down 7% of your super balance each year as your retirement income.

Super projections use today’s dollars. This means we have reduced your super fund growth rate to account for inflation. By using today’s dollars you can measure your future super balance to your current income levels. If the results were shown in future dollars instead, your super growth rate would be larger but it would be more difficult to compare to your current financial position.

Hey Coach assumes compounding growth for your super, calculated using a future value model. Compounding occurs when your super generates growth from both its initial value and the accumulated value from future years. Compounding, therefore, differs from linear growth, where only your initial super balance grows each year.

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