How to include an account-based pension (ABP)

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Pathfinder can model an existing or new account-based pensions (ABP). You can use the  (Robot) button to let Pathfinder calculate when to start the ABP, how much to rollover and how much to draw as a pension (recommended), or you can you can set when to start the pension and set how much to roll over.  Pathfinder will always keep within the legislation. For example, it will not start a pension if the individual is not eligible to do so, and it will keep to the transfer balance caps and minimum pension withdrawal requirements. Please see the steps in the table, below, for details on where to find the options.

Entering data for an account-based pension

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StepDetails
Consider if you would like the individual to start with a transition to retirement income stream (TRIS) that is then converted to an ABP

If you would like the individual to start with a Transtition to retirement income stream (TRIS), which is then converted to an ABP, then you should follow the instructions on How to include or exclude a Transition to retirement income stream (TRIS, formerly known as TTR).

If the individual has a TRIS, Pathfinder will automatically convert the TRIS to an ABP once the individual becomes eligible.

Make sure the rest of thee case data has been entered

Although you may need to adjust your data inputs after reading these instructions, they following instructions assume you have already entered the majority of the case data already, including:

  • Superannuation funds and/SMSFs (although more details about entering the ABP are below)
  • Annual living expenses
  • Personal details, cash flows, assets, loans, income and expenses

For more details, see Entering Data in Pathfinder and Minimum data required for Pathfinder

(if required) Enter the existing ABP balance, if the individual has already started one

If the individual has already started an ABP:

  1. Go to the Current situation step (top menu), then the Super and Trusts step and find the individual's superannuation fund or SMSf

  2. The individual's current pension phase balance should be entered in the Pension phase balance field:
    1. On Superannuation funds, this field is on the investment(s) inside the fund
    2. In SMSFs, this is in the on the SMSF in the 'Member' section
  3. Fill in 'Super transfer balance information' section on the Individual.

NOTE: you do not need to enter how much the individual is currently drawing as a pension because Pathfinder will calculate this for you

Check your data at the

Retirement planning sub-step (under the Cash flows & Goals step on the top menu)

  1. Go to the 

    Retirement planning sub-step (under the Cash flows & Goals step on the top menu)

  2. Make sure the Retirement age field is filled in - This is used to determine when the individual is eligible to start an ABP. Even if the Individual has already retired, you should enter a value, otherwise Pathfinder will assume the individual is not retired.
(Optional for superannuation funds, not SMSFs) Choose options for the controlling when to start the ABP from the superannuation fund. You can let Pathfinder calculate it for you, or you can set more specific options.

These options are only currently available for superannuation funds, not SMSFs.  Currently, Pathfinder will calculate pensions for SMSFs, and there are no additional options to set alternatives (these will be added in a later release).


To let Pathfinder calculate if/when to start the ABP, based on the individual's eligibility and expenses, you just need to make sure the Robot option is chosen.

Depending on which other options you have chosen on your super funds, different fields will display. Go to the Cash flows & Goals > Review super funds step and find the super fund:

  • If the Custom options or Options for withdrawals fields are set to , leave them as they are.  This will cover letting Pathfinder calculate the TRIS and you don't need to choose any further options.
  • If Options for withdrawals has not been set to 'Control withdrawals/pension', then the Pension payments (TRIS/ABP) field will be visible and you should set it to 


To set when to start the ABP and specify how much to roll over

  1. Go to the Cash flows & Goals > Review super funds step and find the super fund
  2. For the Custom options field, choose 'More options'
  3. Then for the Options for withdrawals field, choose 'Control withdrawals/pension'
  4. Then for the Pension payments (TRIS/ABP) field choose 'Control pension payments'. This will show the fields for starting a pension and how much to rollover.


Also note:

  • If you would like to choose specific options for Pension payments, it is recommended you compare the results with a scenario where you have set 'Pension payments (TRIS/ABP)' to  (robot), so you can see how big the projected difference is. For more, see How to make another scenario for comparison
  • If the individual will also start a TRIS, Pathfinder will automatically convert a TRIS to a tax-free ABP, once the individual is eligible to do so
  • Avoid choosing options the will force Pathfinder to exceed the transfer balance cap when rolling funds over to the Pension phase.  If the transfer balance cap is reached in your case, it will be reported in the 'Solve events' box, and then you can check the Detailed reports.  Pathfinder may make commutations or violate constraints, so carefully review the results, and adjust if necessary. If an individual reaches their transfer balance cap, it is strongly recommended you set 'Pension payments (TRIS/ABP)' to  (robot) since Pathfinder's optimiser works best when it's unrestricted.


Reading the results for an account-based pension

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If funds are being kept in the 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:

  1. At the Strategy summary step:
    1. There is a section for each superannuation fund which will show when the fund has a pension phase
    2. There is a Retire section for each individual that will list if an account-based pension is started
  2. At the Cash flows & Action items step:
    1. In the Cash flows report, the ABP will be listed in the Revenue section with a row called 'Superannuation income stream'
    2. In the Action items, there will be action items for:
      1. drawing an ABP
      2. rolling over funds to the pension phase
      3. When a TRIS is converted to ABP
  3. In the Detailed reports step, you can see an ABP in the following reports:
    1. 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)
    2. Consolidated > Cash flows (detailed): There's a line for "Superannuation income stream" for each individual
    3. If the ABP is drawn from a retail or industry super fund:
      1. Full details of the ABP pension are here: "Individual name" > "Super fund/SMSF name" > "Super fund/SMSF name" Pension > Pension payments
    4. You can also check the accumulation/pension phase balances under:
      1. (Individual) Super fund balances - this shows end of year balances only
      2. (Individual) > Super fund (or SMSF) - this shows the balances at the start of they year, after rollovers and at the end of the year.
    5. (Individual) > Cash flows > Superannuation transfer balance account: This shows you how close the individual is to the transfer balance cap

For more information, see Retirement Planning and Build Super results.

If you let Pathfinder calculate the ABP and the results have more funds in the accumulation phase than you were expecting, see Understanding why funds are kept in in the accumulation phase of super instead of the pension phase.

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