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dela.dzadey's avatar
dela.dzadey
Icon for Advisely Board rankAdvisely Board
7 months ago

AMA: We’re Dela Dzadey and Lana Graham, paraplanning and Xtools experts, Ask Us Anything!

Got a burning question? Join us here on Wednesday 22nd May from 2pm to 2:30pm. For those who don’t know us, I’m Dela Dzadey, director and advice manager at TNT Group, helping bridge the efficiency ...
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stella0321's avatar
stella0321
Curious Observer
7 months ago

Hope that I'm not too late:
1, a couple, husband and wife with a larger age gap, they both are eligible to receive age pension. By the time the wife at her 80, husband already over 95 but age pension still last forever. Do we have a plan to choose age pension up to life expectancy instead of forever?

2) when I model a lifetime guarantee annuity, the payment is only paid up to the guarantee period e.g. challenger guarantee for 16 years and the payment continues only up to 16 years instead of lifetime, am I correct to say that the projection only last until life expectancy, can it be longer (e.g. longest expectancy)?

I know other area in xplan is not part of the discussion here, but can you please pass on, the balance we enter in superannuation plan, can the preserved amount (instead of amount) also allow to % (as most of the time it would be 100% preserved).

  • lana.graham's avatar
    lana.graham
    Icon for Iress Contributor rankIress Contributor
    6 months ago

    Hi stella0321,

    Thanks for coming over to Advisely to ask your questions  :) 

    1)    It sounds like you’d like the projection to show you the wife’s financial situation if/when her husband dies. This is not the first time we have heard this request. This would be a huge undertaking, considering the various changes to Centrelink and Tax treatment when someone transitions from Couple to Single, so its not something we can do in the near future - but we’ll keep it in mind because we can see that many users want it.

    For the mean-time, you can adjust the husband’s Age Pension down to $0 from the year of his life expectancy by going to the Pension Details Display screen and entering adjustments in the row highlighted.

    2)    The first step to modelling your Challenger annuity is to understand exactly which product it is. Below is an example from Challenger’s PDS of their Flexible Income product (standard death benefit).

     

    I’ve written a guide on how to model it on this Community page.

    Here’s a screen shot. In short:

    • Make sure you set it as a lifetime annuity.
    • Since you mentioned longest life expectancy, it sounds like the client has nominated a reversionary beneficiary, so set reversionary (highlighted blue)  to Yes.

    3)    Regarding your request for a % field for Preservation components: Coincidentally, we’re just about to start a project to look at adding more standard inputs to Client Focus.  However I don’t believe it would be correct to add a % field for Preservation, since the preservation amounts are locked in as fixed dollars until age 65, at which time the balance becomes 100% unrestricted non preserved. I’m keen to hear about any other fields you’d like to see in Client Focus, to then be imported to Xtools.

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