Here are the assumptions used in our research:

• Richard's salary sacrifice amount is up to the concessional contribution limit of $25,000 to his super account until his retirement.
• Richard has a taxed super fund account.
• Richard's income is indexed to AWOTE.
• Richard receives SGC of 9% pa until retirement.
• The strategy commences on 1 July 2009.
• Pre-retirement cost of living of $40,000 pa net of tax and indexed to CPI.
• Post-retirement cost of living of $40,000 pa net of tax and indexed to CPI.
• Inflation rate of 2.5% pa.
• Average Weekly Ordinary Times Earnings (wages growth) rate of 4% pa.
• Super account (taxed fund) - Balanced Plan return of 6.22% pa.
• Account Based Pension - Balanced Plan return of 6.22% pa.
• Richard received the dependent spouse tax offset.   

Source: GESB Financial Advice