Issue 1: Estimated duration of existing superannuation

Calculate the number of years the current superannuation fund amount of AUD600,000 will support a net income requirement of AUD75,000 per annum. Assume the net income requirement does not change and the fund generates a constant return of 5% per annum. Ignore fees and taxes. Show your answer in years to one decimal place (for example, 10.2 years). (3 marks)

Question 1.a (6 marks) Marion has requested your advice in relation to her goal of continuing to self fund her retirement. Marion is aged 65 and, for planning purposes, expects to continue as a self funded retiree for another 30 years. Marion has identified two key issues for you to address