Case Study 4: Annuities
Comparison of Annuities and Account Based Pensions
Introduction
Eddie and Lizzy, a retired married couple, are 69 and 65, respectively. They have annual expenses of $73,077 and own a $1,250,000 home with no mortgage. Eddie’s Super is $425,000, and Lizzy’s is $350,000, plus $50,000 in cars and household contents. They seek a stable income stream.
The video below will illustrate two strategy options:
- 30% Annuity + 70% ABP: Rollover their respective Superannuation accounts into a blend of 30% Annuities and 70% Account-Based Pension's.
- 100% ABP: Rollover their respective Superannuation accounts into an Account-Based Pension.
Modules covered
- Current Position:
- Fact Find
- Advice:
- Strategy Builder (iff Modeller)