Susan would like to receive $40,000 in the first year of her financial independence at age 60. After this first income payment, she is content with her annual income growing at the rate of 2% per annum below the rate of inflation. She would like this income to be paid indefinitely. She expects inflation to be 3% per year and her investments to achieve nominal returns of 8% per year (compounded yearly). Assuming that all calculations are to be performed in 'real' terms, how much does she need to save for financial independence (to the nearest dollar)? Please do not include dollar signs or commas in your answer. Answer: 103771 Which of the following statements is LEAST consistent with the lecture content on Account Based Pensions (ABP): O O O Only a regular income can be drawn from superannuation savings in an ABP. Lump sum withdrawals are not allowed. The concessional tax allowances for ABPs are subject to the Transfer Balance Cap. If someone is aged over 60, the income drawn from the ABP is normally tax-free and investment earnings are also normally tax-free as well. They allow someone to draw a regular income from their superannuation savings after they have reached their preservation age and permanently retired.