Support Query
How does Simple Fund 360 calculate the minimum and maximum pension amount for an allocated pension?
Calculation
The calculation used is dependant upon the commencement day of the income stream. Simple Fund 360 uses the following link as a reference for obtaining the payment valuation factors and percentage factors
Payment Factors for Allocated Income Streams
Bare in mind that when referencing the above link, the table you will refer to depends on the commencement day of the income stream. Use the table below as a guide.
Example
Minimum calculation
Age = 64
Date of Pension commencement = 01/07/2006 (Table 2)
Balance = $500,000
Minimum Payment Factor = 17.7
COVID-19 Reduction = 50%. (For further information regarding Simple Fund 360 updates regarding COVID-19, please click here)
( Balance / 17.7 ) x 50%
( $500,000 / 17.7 ) x 50% = $14,124.29
Maximum calculation
Age = 64
Date of Pension commencement = 01/07/2006 (Table 2)
Balance = $500,000
Maximum Payment Factor = 10.1
( Balance / 10.1 )
( $500,000 / 10.1 ) = $49,504.95
.