Alicia/Jennifer Comparison Assumptions

The Alicia versus Jennifer example shown opposite contains the following assumptions:

both Alicia and Jennifer are 30 years old and have an initial superannuation balance of $45,000;
current salary of $55,00 per annum before tax;
compulsory employer contributions of 9% of salary;
management costs equal to 1.4% of super balance;
insurance premiums equal to $78 per annum;
Alicia pays a commission on her contributions of 5% plus a trailing commission of 1% per annum on her super balance;
Jennifer pays no contribution or trailing commissions but pays $385 per annum for AllMyFunds' subscription service;
Jennifer contributes an extra 5% of her pre-tax salary per annum;
Alicia's fund risk profile of 'Balanced' has earnings of 7.5% per annum before fees and taxes;
Jennifer's fund risk profile of 'Growth' has earnings of 8.5% per annum before fees and taxes;
assumed life expectancy after retirement of 21 years;
retirement pension calculated by reducing risk profile by one level ('Conservative' for Alicia earning 6.0% per annum and 'Balanced/Growth' for Jennifer earning 8.0% per annum before fees and taxes);
inflation plus a rise in community living standards assumed at 3.5% per annum;
tax on super contributions is 15%;
income tax tables used are for the 2008/09 period.

Please see the Terms and Conditions for the limitations of these assumptions.