How to model a Transition to Retirement Pension Income
Transition to retirement calculations are automatically "activated" if the client data meets the following two conditions:
1. If the member has an income of the type "Salary"; AND
2. If the member has an active Pension Account (i.e. a Pension Account with a balance in it).
In the following example, we will model a transition to retirement pension for Sam from 2046 until retirement in 2050.
1. Enter the client's salary that ceases in 2050 (when the client plans to fully retire).
2. In the client's superannuation fund, enter a 'Rollover to Pension Account' in the year the TTR is the start, in the amount you wish to roll to Pension phase.
If the client has not reached preservation age, the system rules will not allow the pension rollover. You will see an Error Message at the top of your screen.
Once you have completed your data entry, Prospera recognises that you have met the criteria for a TTR and will apply the TTR rules for the period that you have both the Pension and Salary running.
The system will include the TTR pension income of the greater of:
* the age based minimum; or
* the percentage of the pension balance as set within the Pension data entry (to a maximum of 10%).