Bobby Brown has just turned 48 years of age and has come to you seeking retirement advice. During your discussion the following information was communicated:

Bobby wants to retire on his 65th birthday;

he currently has $198,000 in his superannuation fund;

he contributes $800 per fortnight into his super account; and

the investment returns are 8% p.a.

In addition to the super fund, Bobby has also invested $100,000 today (his 48th birthday). The investment is in a direct share portfolio which produces average returns of 6% p.a. after tax. The investment returns are paid every 6 months. When Bobby retires at the age of 65, he will use his super and non-super investments to purchase an ordinary annuity which will provide him with a regular monthly income stream until he reaches life expectancy at 83 years of age. The rate of return for the annuity will be 4% p.a. Bobby is concerned that he may live beyond life expectancy and wishes to ensure he has a residual value of $150,000 remaining in his annuity when he turns 83. He will use the money to supplement the aged pension.

Question: What will be the annual pension amount that Bobby will receive until age 83? Returns are compounded annually at year end. Present all calculations to support your answer.