60 Seconds on Super - assumptions, sources and disclaimers

Average retirement payout in 2006 - source: Association of Superannuation Funds Australia Retirement Savings Update Report, February 2008.

Comfortable living standard estimate - source: Westpac ASFA Retirement Standard 2007.

76% of Australians eligible to choose their super fund - source: Rice Warner Actuaries, 2008.

Over 6 million super accounts lost - source: Association of Australian Superannuation Funds media release '$12 billion in lost super funds accounts: ASFA', 21 December 2007.

Average number of super funds per Australian - source: Association of Superannuation Funds of Australia, 2008.

Add $40 a week to get $129,000 at retirement case study - source: calculated using ASIC Fido Superannuation Calculator http://www.fido.asic.gov.au/supercalc and is based on a person of 30 years of age adding an additional $40 per week into their super fund (on top of compulsory 9%) over 35 years.

Super co-contribution statistics, 12 million eligible, only 10% take part - source: Australian Bureau of Statistics 2006 Census Tables: 20680-Gross Individual Income (weekly - including annual ranges) - Australia, and Australian Taxation Office: Super Co-contributions Annual Report 1 July 2006 to 30 June 2007.

BT Everyday Super Calculator - assumptions and disclaimers

The BT Everyday Super Calculator is designed to give you a sense of the impact over the long term of you of giving up small 'everyday' items now and contributing the money saved into superannuation. This calculator is designed to be a general guide only. The calculatoris not designed to illustrate your overall superannuation position at retirement as this would be based on many different factors including your personal circumstances, level of contributions, your salary, tax rates and rates of return achieved, all of which may change over the years.

While the assumptions are reasonable, they do not provide any guarantee in relation to any illustrated amount the calculator derives. We recommend you seek your own financial advice if you want to get a clear picture of your superannuation and retirement needs and how you might best achieve your goals over the long term. We also recommend that you obtain and read a copy of the Product Disclosure Statement for the relevant product before making any decision in relation to your superannuation.

To the extent permitted by law, BT Financial Group will not be liable to any party for any loss or damage arising, either directly or indirectly, from the calculator. Further, BT Financial Group does not make any representation or warranty about the accuracy of the results.

Assumptions used in the calculator

• Retirement age: The projection assumes retirement age is 65 years.
• Fees: We have included an allowance for management fees which we have assumed at an industry average of 1.26% per annum as per the IFSA Rice Warner Actuaries Superannuation Fees Report 2007. The result presented by this calculator will be net of these assumed fees and charges.
• Rate of return: We have assumed that your investment in superannuation would return 8% per annum (before fees and taxes) on average over the period to your retirement. This figure is taken from ASIC's FIDO calculator and is considered a reasonable and realistic return over the long term for an investment in a 'Balanced' fund which invests 60-70% in shares or property, with the rest in fixed interest and cash. The actual rate of return you achieve will depend on how your superannuation is invested and the prevailing economic conditions affecting investment earnings over the investment period.
• Inflation: We have assumed inflation at 2.5% per annum steady for the investment period. The outcome of this calculator takes into account this assumed rate of inflation and has converted the future projected value into current dollar values.
• Tax: We have assumed current 15% tax rate for super earnings will apply to taxable earnings on the fund for the duration of the investment. Contributions tax is assumed to be zero. The imposition of no other tax has been assumed for the purpose of this calculator.
• Timing and type of contribution:The calculator assumes that the amount you 'save' over a year is then contributed to super as a one-off after-tax personal contribution at the end of the 12 months.
• Eligibility: This calculator assumes that all contributions will be made to a complying superannuation fund and that the superannuation fund will be able to accept your contribution.

Basis for savings quoted

• Coffee: Based on price of medium and large coffees at popular Australian coffee shop franchise.
• Bus ticket: Cost of Sydney bus ticket covering 2 transit zones.
• Airfare: Based on the difference in price between standard economy return and standard business return, Melbourne to Sydney route.
• Beer: Based on reasonable estimate of cost for 6 pack imported beer and 6 pack local beer.
• Newspaper: Based on cover price of highest circulation national and state newspapers.
• Mobile phone calls: Based on 5 minute call time and average call rate advertised by national carrier.
• Manicure & Pedicure: Reasonable estimate of treatment at nail salons in metropolitan areas.
• Bottled water: Based on reasonable estimate of average price of 375ml bottled water.
• Lunch: Based on reasonable estimate of cost of shop-bought sandwich less cost of groceries for home-made lunch.
• Magazine: Cover price of high circulation weekly consumer magazine.
• Cleaning: Based on reasonable estimate of cleaner's hourly rate ($25) and weekly service of two hours.
• Plasma Television: Average cost of selection of plasma TVs from leading Australian retailer.
• Designer Shoes: Reasonable estimate of average cost of low-mid price designer shoes for women.
• Restaurant meal: Reasonable estimate of cost of average 3 course meal for one person.
• Taxi fares: Based on average cost of fare from Melbourne CBD to suburbs.
• Clothes shopping 'splurge': Reasonable estimate of cost of new jeans and shirt.
• Gym membership: Based on advertised rate for gym membership at a popular national gym chain.
• Night at the movies: Cost of 1 adult movie ticket, food and drink at national cinema chain less cost of new release DVD hire from national rental franchise.

*The prices quoted for these products are based on actual prices publicly available. While prices may vary, due care has been taken to ensure that the prices are reasonable and accurate for the purposes of this calculator. All prices were last updated in June 2008.