Allocated pensions are a popular form of retirement income streams which can be purchased with superannuation. They can also be a highly tax-effective method of accessing your super. But comparing them is often a nightmare. So you can evaluate how different product fees affect the regular income payments you receive in retirement, ASIC has developed an online allocated pension calculator.
Available on the FIDO website the allocated pension calculator looks at varying factors, including fees and investment strategies, on the amount you can draw down and how long this income stream might last. YOURLifeChoices test drove the calculator and found it fairly challenging. Make sure you download the seven-page PDF explaining how the calculator works before you try it out. If you are already receiving an allocated pension you will need your latest member statement or annual benefit statement.
If you have yet to purchase an allocated pension, you will need the most recent product disclosure statement in order to extract the information on management and adviser fees and costs etc. If you're not the full bottle with financial services, nor an accounting guru, we suggest that you use this calculator in good company – such as your family accountant.
Test it for yourself and tell us your thoughts.
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