How the Retirement Bonus is applied depends on whether your client has requested to transfer their full balance or a specified amount to a Retirement Income account or Lifetime Pension as outlined in the scenarios below. If you are opening a Retirement Income account and Lifetime Pension, the Retirement Bonus is paid proportionally across those accounts.
Scenario One
When the full balance of an Accumulation account and/or Transition to Retirement (TTR) Income account is transferred:
The Retirement Bonus is calculated on the full balance of the Accumulation account and/or TTR Income account and added to the amount transferred.
Example:
- Accumulation account balance: $500,000
- Retirement Bonus on balance ($500,000 * 0.50%) = $2,500
- Retirement Income account starting balance: $500,000+$2,500 = $502,500
Scenario Two
When a specified amount from an Accumulation account, which is less than the full balance, is transferred:
The Retirement Bonus is calculated on the specified amount, but only the specified amount is transferred to the Retirement Income account.
Example:
- Accumulation account balance: $500,000
- Specified amount of $400,000 to be transferred to Retirement Income account
- Retirement Bonus on balance ($400,000 * 0.50%) = $2,000
- Income account starting balance: $400,000 (as it’s the amount specified)
- Accumulation account balance: $102,000
Scenario Three
The Retirement Bonus is calculated on the account balance less the specified amount to be left in the Accumulation account*, and then transferred to the Income account.
Example:
- Accumulation Account balance: $500,000
- Specified amount to remain in the Accumulation account: $10,000
- Retirement Bonus on Balance ($490,000 * 0.50%) = $2,450
- Income account starting balance: $490,000 + $2,450 = $492,450
- Accumulation account balance: $10,000
*We treat any instruction for a specific amount to be transferred or retained as absolute. Therefore, we will pay the Retirement Bonus to the accompanying account .
Note: These scenarios above are provided for illustrative and educational purposes only
The calculations are not intended to be relied on for the purposes of making a decision in relation to a financial product. Members should seek advice from a qualified licensed professional, regarding their own circumstances, before making any financial decisions.