What to enter at the Retirement Planning step
The Retirement planning goal is under the Cash flows & Goals step (on the top menu). In this section, for each individual, you can set options for:
- Voluntary super contributions (e.g. salary sacrifice, deductible contributions, non-concessional contributions)
- Retirement age or date
- Drawing a pension
- Including an estimate for the Age Pension
Data entry tips
- You can use the Age Lookup table to find an individual's preservation age and Age pension age.
- If you are unsure where to start with this section, the How to make another scenario for comparison). (robot) button is a good initial option. In many cases, Pathfinder will prefer to use excess funds for voluntary super contributions over any thing else in the case, and so the results will give you a good indication of the maximum contributions that the individual can afford while meeting other goals in the case. If the contributions seem inappropriate for the case (for example, if the individuals are a long way from retirement, you can return to the Retirement planning step and place more restrictions on the voluntary super contributions (see below for placing restrictions, and to copy a scenario, see
Retirement age or date
|Set when an individual plans to retire|
On this page
Entering data for a super guarantee
The super guarantee is the compulsory amount of your salary that your employer must pay into your super account. Pathfinder has two options for calculating the super guarantee.
Video - How to include the super guarantee
Super guarantee in the results
To view the super guarantee in the results, see: Detailed reports > (Individual - side menu) > Cash flows > Super deposits summary. In the 'Concessional deposits' section, there are lines for:
Video - Where to find super deposits information
Set options for making voluntary super contributions
(i.e. salary sacrifice, self-employed deductible contributions, non-concessional super contributions)
ROBOT button - this button will contribute to super as much as the individual can afford if it will maximize their total wealth under the given assumptions. The best combination of before and after-tax contributions will also be calculated. You should check the results to ensure they are consistent with their risk profile. NONE button - no voluntary super contributions will be made for the entire analysis. SET TOTAL VOLUNTARY AMOUNT button - set a maximum contribution amount and Pathfinder will optimise between before and after tax contributions. DEFINE BEFORE/AFTER TAX CONTRIBUTIONS button - Separately control voluntary before-tax contributions and voluntary after-tax contributions. NOTE: For all options, by default, Pathfinder will not exceed contribution caps.
For more information on setting a specific amount in some years and optimising in others, see How to allow a value to be optimised in the series builder by using dash.
Pathfinder will not make contributions if they contradict the legislated threshholds (e.g. the annual concessional super deposit cap). Most options in Pathfinder allow you to keep within these thresholds without any special attention (e.g. Start solve button). In some situations, Pathfinder may still produce results, but they will follow the legislation instead of your instructions, and it is strongly recommended that you adjust your inputs and run again to ensure robust results., maximum). However if you set instructions that will force Pathfinder to contradict the rules, you will get an error in the 'Solve events' (which is visible at the 'Solve' step when you click the
|Use bring forward rules|
Pathfinder will apply the bring-forward rule if all of the following apply:
The government co-contribution amount will automatically be calculated. However note that this co-contribution can only be made when:
Pensions & income in retirement
Include/Exclude a transition to retirement pension
On this page
Pathfinder can model an existing or new transition to retirement income stream, or TRIS (formerly known as Transition-to-Retirement (TTR) pensions).
Entering data for a TRIS
TRIS in the results
In the results, you can see the TRIS in the following places:
How to find out what return is being modelled for the TRIS
In the assumptions report, the ‘accumulation phase return’ for the super fund is the return that is also used for the TRIS pension. This return is assumed to be after tax. In the results, you can check the returns in the detailed reports:
Common reasons a TRIS is not started
If you were expecting a TRIS to be started, but the results do not include one, some things to check are:
If you would like to make adjustments to the TRIS (e.g. make it start in a certain year, prevent it in some years), please contact Optimo Financial.
|Start an account-based pension (ABP)|
On this page
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:
In the results, once the individual has retired, an account based pension will be started as required, including calculations for:
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:
|Include/Exclude spouse super splitting|
To set the option for spouse super splitting:
|Government Age Pension|
To include or exclude an estimate for the Age Pension for the scenario:
Note that if an individual is receiving an Age Pension, you should not enter it as income as this will double up with Pathfinder's estimate.
If you choose to include an age pension estimate:
For more, see How to include or exclude the Government Age Pension
|Pension income from other countries|
If an individual is receiving a pension income from another country, this should be entered in Australian Dollars in the Income section of Pathfinder.
|Retirement income before preservation age|
If the individual is retiring before their preservation age, then Pathfinder will work out what assets it can draw on outside super to meet their expenses. This may be income from investments or selling investments or their partner's income. You can still allow Pathfinder to make deposits to super, if you choose the, Pathfinder will not make contributions to super if it means they will not have enough funds to meet their expenses before their preservation age.
Reading the results for retirement planning
Strategy Development Service (SDS) options
If the case includes complex analysis that you are not able to do in Pathfinder yourself, it may need to be submitted to the Optimo Financial SDS. Complexities include, but are not limited to:
- Defined Benefit pensions