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Entering data for an account-based pension
An Account-Based Pension (ABP) is a pension that is drawn from a superannuation account. Pathfinder typically calculate the pension to draw based on the expenses you have entered.
To include an account based pension in a scenario:
- Make sure you have entered the individual's Superannuation and SMSF (Self-Managed Super Fund) details
- If the pension is 'Return of Capital', then change the Pension income test rules field to 'Return of capital' to ensure that any Age Pension calculations are correct (the default is 'Deeming').
- Go to the Cash flows & Goals step (on the top menu), then the Retirement planning sub-step:
- Enter the individual's retirement age or date (once you enter the age, the date will be calculated or vice versa).
- In the Expenses section, make sure that their expenses reflect their desired spending in retirement (for more help adjusting expense values in different years, see How to increase or decrease a value in the series builder)
In the results, once the individual has retired, an account based pension will be started as required, including calculations for:
- How much should be rolled over from the accumulation phase to the pension phase
- The percentage withdrawal from the pension account that should be made to meet expenses
For more information, see Retirement Planning and Build Super results.
Reading the results for an account-based pension
If funds are being kept int he pension phase, and you were expecting them to be rolled over to the pension phase, see Understanding why funds are kept in in the accumulation phase of super instead of the pension phase.
In the results, you can see the account-based pension in the following places:
- At the Strategy summary step:
- Sections for super funds will show when the fund has a pension phase
- The Retire section for each individual will state if an account-based pension is started
- At the Cash flows & Action items step:
- In the Cash flows report, the ABP will be listed in the Revenue section with a row called 'Superannuation income stream'
- In the Action items, in the the year the ABP is started, there will be an action item saying to start a ABP which includes information about how much to rollover. In every year an ABP is drawn, there will be a statement of how much to withdraw.
- In the Detailed reports step, you can see ABP in the following reports:
- Consolidated > Cash flows: There's a line for "Superannuation income stream" (note that this will be the total ABP payments if it is a couple)
- Consolidated > Cash flows (detailed): There's a line for "Superannuation income stream" for each individual
- If the ABP is drawn from a retail or industry super fund:
- Full details of the ABP pension are here: "Individual name" > "Super fund/SMSF name" > "Super fund/SMSF name" Pension > Pension payments