Dylan (57) and Megan (56) are considering retiring in the next few years. They have some questions for you since you are their adviser. They own their own home outright and have two children, Rob (19) and Con (23). Rob is a full-time university student, and Con works in a bank. Dylan is employed as a surveyor and earns a salary of $100,000p.a. + 9.5% Superannuation guarantee charge. He has $700,000 in his superannuation account, with $200,000 in the Tax-Free component and $500,000 in the Taxable component. Dylan's superannuation account has a binding death nomination, split 50% to Megan, and 25% each to Rob and Con. Megan is a self-employed freelance journalist and earns $35,000 p.a. She has not made any contributions to her superannuation account since starting her business 5 years ago. From her previous employment, she has a superannuation account which has $200,000 in it, made up of $160,000 Taxable (Taxed) and $40,000 Tax-Free components. Megan has not nominated any beneficiaries in respect of her superannuation account. CASE STUDY 2 CONTINUED IN THE FOLLOWING PAGES QUESTION 2 Dylan rolled his superannuation into a pension on 1 July 2020. He has elected to take minimum payments each year. REQUIRED: (a) Calculate his minimum, and maximum income he can receive from the superannuation pension. (b) Is Dylan entitled to the 15% rebate? If yes, how much is Dylan's superannuation rebate? Show your calculations. (c) Outline three beneficial features of an account-based pension. Dylan (57) and Megan (56) are considering retiring in the next few years. They have some questions for you since you are their adviser. They own their own home outright and have two children, Rob (19) and Con (23). Rob is a full-time university student, and Con works in a bank. Dylan is employed as a surveyor and earns a salary of $100,000p.a. + 9.5% Superannuation guarantee charge. He has $700,000 in his superannuation account, with $200,000 in the Tax-Free component and $500,000 in the Taxable component. Dylan's superannuation account has a binding death nomination, split 50% to Megan, and 25% each to Rob and Con. Megan is a self-employed freelance journalist and earns $35,000 p.a. She has not made any contributions to her superannuation account since starting her business 5 years ago. From her previous employment, she has a superannuation account which has $200,000 in it, made up of $160,000 Taxable (Taxed) and $40,000 Tax-Free components. Megan has not nominated any beneficiaries in respect of her superannuation account. CASE STUDY 2 CONTINUED IN THE FOLLOWING PAGES QUESTION 2 Dylan rolled his superannuation into a pension on 1 July 2020. He has elected to take minimum payments each year. REQUIRED: (a) Calculate his minimum, and maximum income he can receive from the superannuation pension. (b) Is Dylan entitled to the 15% rebate? If yes, how much is Dylan's superannuation rebate? Show your calculations. (c) Outline three beneficial features of an account-based pension
