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Assumptions update (Tasman v6)
19 August 2021 (Tasman v6)
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Summary
The Optimo default returns for some assets have been updated in Pathfinder:
Asset returns are based on Lonsec Capital Market Assumptions June 2021, including franking credits for Australian Equities.
For cash returns, the current interest rate is 0.1%, however the long term average is assumed to be 1.7%, so:
For cash accounts, we assume that the interest rate is 0.1%, and then increases to 1.7% in 2026/27, since cash accounts are more immediate
For cash held in shares/managed funds, the long term rate of 1.7%pa is used for all years since it is assumed shares/managed funds are kept for an extended period.
Cases created after the release date will use the new assumptions. Cases created before the release date will not be affected,
Updated assumptions for shares/managed funds and super investment options
'Superannuation' and 'Pension' refer to returns inside superannuation funds.
'Growth' and 'Distribution' refer to shares/managed funds owned by an individual or SMSF.
Profile | Field | Old value %pa | New value %pa |
Secure | Superannuation: | 1.9 | 1.4 |
Pension: | 2.2 | 1.7 | |
Growth: | 0 | 0 | |
Distribution: | 2.2 | 1.7 | |
Defensive | Superannuation: | 2.74 | 2.5 |
Pension: | 3.2 | 3 | |
Growth: | 0.65 | 0.5 | |
Distribution: | 2.54 | 2.5 | |
Conservative | Superannuation: | 3.4 | 3.4 |
Pension: | 3.92 | 3.9 | |
Growth: | 1.3 | 1 | |
Distribution: | 2.63 | 2.9 | |
Balanced | Superannuation: | 4 | 4.3 |
Pension: | 4.64 | 4.9 | |
Growth: | 1.92 | 1.6 | |
Distribution: | 2.72 | 3.3 | |
Growth | Superannuation: | 4.7 | 5.2 |
Pension: | 5.4 | 6 | |
Growth: | 2.6 | 2.2 | |
Distribution: | 2.8 | 3.8 | |
High Growth | Superannuation: | 5.4 | 6.1 |
Pension: | 6.1 | 7 | |
Growth: | 3.3 | 2.9 | |
Distribution: | 2.8 | 4.1 | |
Australian equities (direct) | Superannuation: | 6.1 | 7.3 |
Pension: | 7 | 8.4 | |
Growth: | 3.6 | 2.7 | |
Distribution: | 3.4 | 4.3 | |
Franking credit | 70 | 75 | |
Australian equities (Trust) | Superannuation: | 6.1 | 7.3 |
Pension: | 7 | 8.4 | |
Growth: | 3.6 | 2.7 | |
Distribution: | 3.4 | 4.3 | |
Franking credit | 70 | 75 | |
Cash (direct) | Superannuation: | 0.085 | 1.4 |
Pension: | 0.1 | 1.7 | |
Growth: | 0 | 0 | |
Distribution: | 0.1 | 1.7 | |
Cash (trust) | Superannuation: | 0.085 | 1.4 |
Pension: | 0.1 | 1.7 | |
Growth: | 0 | 0 | |
Distribution: | 0.1 | 1.7 | |
Australian bonds | Superannuation: | 2.13 | 1.7 |
Pension: | 2.5 | 2 | |
Growth: | 0 | 0 | |
Distribution: | 2.5 | 2 | |
International bonds | Superannuation: | 2.06 | 1.8 |
Pension: | 2.3 | 2.1 | |
Growth: | 0 | 0 | |
Distribution: | 2.3 | 2.1 | |
International Equities | Superannuation: | 4.6 | 4.6 |
Pension: | 4.9 | 5.3 | |
Growth: | 3 | 2.7 | |
Distribution: | 1.9 | 2.6 | |
Emerging Markets Equities | Superannuation: | 6.4 | 7.9 |
Pension: | 6.7 | 8.9 | |
Growth: | 4.5 | 6.5 | |
Distribution: | 2.2 | 2.4 | |
Listed Australian Property | Superannuation: | 4.4 | 5.6 |
Pension: | 5 | 6.6 | |
Growth: | 1.2 | 0.5 | |
Distribution: | 3.8 | 6.1 | |
Listed Global Property (aka Listed International property) | Superannuation: | 4.4 | 5 |
Pension: | 5 | 5.9 | |
Growth: | 1.2 | 1.8 | |
Distribution: | 3.8 | 4 | |
Infrastructure | Superannuation: | 6 | 5.1 |
Pension: | 6.5 | 6 | |
Growth: | 3 | 1.8 | |
Distribution: | 3.5 | 4.1 | |
Hedge Fund aggressive | Superannuation: | 8.9 | 5.3 |
Pension: | 10.5 | 5.9 | |
Growth: | 10.5 | 4.9 | |
Distribution: | 0 | 1 | |
Hedge Fund conservative | Superannuation: | 6.4 | 5.3 |
Pension: | 7.5 | 5.9 | |
Growth: | 7.5 | 4.9 | |
Distribution: | 0 | 1 | |
Alternative | Superannuation: | 4.9 | 5.2 |
Pension: | 5.7 | 5.9 | |
Growth: | 0.3 | 3.9 | |
Distribution: | 5.4 | 2 |
Changes to “Fixed interest=Australian bonds”
Field | Old value %pa | New value %pa |
|---|---|---|
Interest rate | 2.5 | 2 |
Accumulation phase total return % | 2.13 | 1.7 |
Pension phase total return % | 2.5 | 2 |
Changes to “Cash" accounts
For cash returns, the current interest rate is 0.1%, however the long term average is assumed to be 1.7%. So, for cash accounts, we assume that the interest rate is 0.1%, and then increases to 1.7% in 2026/27, since cash accounts are more immediate
Field | Old value %pa | New value %pa |
|---|---|---|
Interest rate | 0.1 | 2021/22 to 2025/26: 0.1 2026/27 onward: 1.7 |