What to enter at the Retirement Planning step
At the Retirement planning sub-step (under the Cash flows & Goals step on the top menu), 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 'Robot' button (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 How to make another scenario for comparison).
Retirement age or date
Set when an individual plans to retire
Set options for making voluntary super contributions
(i.e. salary sacrifice, self-employed deductible contributions, non-concessional super contributions)
Use bring forward rules
Pathfinder will apply the bring-forward rule if all of the following apply:
Allow or prevent the 'unused concessional cap carry forward' rule for voluntary concessional contributions
The government co-contribution amount will automatically be calculated. However note that this co-contribution can only be made when:
Satisfy the work test
To have individual satisfy the work test, ensure that the date the individual satisfied the work test is consistent with the 'Retirement date' you enter in Pathfinder.
Pensions & income in retirement
Include/Exclude a transition to retirement pension
Start an account-based pension (ABP)
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 in the Cash flows step (under the Cash flows & Goals step on the top menu) because 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 'Robot' button, 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) and Background adjustment options
If the case includes complex analysis that you are not able to do in Pathfinder yourself, Optimo Support may be able to do some background adjustments to help you get the results you need. Depending on the complexity, this may be included as part of the standard support or additional charges may apply. For more details, please see Modelling outside the scope of Pathfinders' standard modelling.
Some examples of things that are outside the scope of Pathfinder's modelling and how Optimo support can help, are listed below:
Information required by Optimo Support
Examples where additional charges may apply
Defined Benefit pensions, including government super schemes such as PSS, CSS, military super, GESBE
Please contact us if you would like to model these types of pensions.
We may be able to help you as part of our standard support, but if the case is complex we will suggest you submit the case to the SDS. Please note that we're not experts in these kinds of pensions, but as long as you know what the results should look like, then we're happy to work with you to find a way to get the results you need.
- Please contact us if you would like to model these types of pensions.