Assumptions and important notes

The 'Income stream estimator' tool helps you estimate the lump sum investment amount required to generate a certain level of income over time, or alternatively, the amount of income that may be generated from a certain investment.

This can be useful for quickly estimating whether an investment amount may be sufficient to fund a desired level of income over time. This is not a comprehensive calculator. To understand the impact of investments in the context a broader portfolio, you will need to use a more comprehensive calculator or financial planning software. If applicable for your client’s circumstances, you may wish to use Challenger's Retirement Calculator.

Assumptions

The estimator assumes that:

• No capital is returned at the end of the investment time frame.
• Withdrawals are taken at the start of the year (prior to interest being paid).
• The earning rate (%) is constant over the timeframe of the investment.

The estimator does not take into account any tax payable and excludes any Age Pension entitlements.

All values are real values (so income is in today's dollars).

Important notes

The estimator is for use by licensed financial planners (Advisers) only, to assist an Adviser as part of their advice to their own client. It does not take account of any person’s objectives, financial situation or needs and is not intended as advice or to be relied upon for the purpose of making a decision in relation to a financial product.

The estimator provides illustrative amounts for general information only. The results obtained from the estimator will depend on the assumptions used and the data input by the user. It is probable that actual future experience will differ from the output obtained from the estimator. No warranty is provided in regard to the accuracy or reliability of the information.