On 22 March 2020 the federal government announced COVID-19 early release of super measures. These measures allow individuals to withdraw up to $10,000 from super before 30 June 2020 and up to a further $10,000 between 1 July 2020 and 24 September 2020.
In response to this, Cumpston Sarjeant has made an enhancement to the Lifetime Superannuation Model to enable superannuation fund members to model the long-term impact of making a withdrawal from super under COVID-19 early access measures.
The Lifetime Superannuation Model is an online superannuation model intended for super funds to enhance their online offer. It enables fund members to model the impact of decisions such as making additional contributions to superannuation, periods of part-time work and investment choice. The model has been developed in a partnership between Cumpston Sarjeant and AHC, a Gallagher Company known for innovative communication solutions.
The enhancement to the Lifetime model allows a member to consider the expected impact of making a withdrawal from super now on their retirement savings. The estimates allow for the member’s circumstances (most importantly how much they intend to withdraw, their current age and retirement age) and assumptions concerning future investment returns based on how the member’s funds are invested. A screenshot of the enhancement is shown below (the estimate in the screenshot is based on a member age 35, retiring at age 67 with a net return after tax and fees of 6% pa, discounted to present values at 3.2% pa).
The calculator is designed to comply with regulatory requirements concerning online calculators, including ASIC Corporations (Generic Calculators) Instrument (2016/207) and ASIC Regulatory Guide 167 Licensing: Discretionary Powers.
A test version of the early access calculator is available here:
For further information please contact Paul Thomson on (03) 9642 2242.