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Overview

In the AdviserLogic Cashflow 2.0 module, an annuity—often referred to as a lifetime pension or fixed-term pension—provides clients with a guaranteed income over a specified period or for the rest of their life. While annuities are less flexible than account-based pensions, they offer the advantage of predictable, stable income, making them a valuable tool in retirement planning.

The Cashflow 2.0 module enables advisers to model and manage annuities effectively, integrating them seamlessly with a client's overall financial strategy. This ensures that clients benefit from both the security of guaranteed income and the clarity provided by comprehensive financial modelling.

Access

To access the Cashflow 2.0 Pension tab, open a client record, hover over the Cashflow tab, and select Cashflow 2.0 from the drop-down menu.

Open an existing Scenario or create a new one by selecting the blue Plus+ button, entering a Scenario Name, and ticking the available setup options.

The Cashflow 2.0 landing page will open the Cash Accounts tab in the Overall Position view if the client is partnered, or on the Client if they are unpartnered.

The Overall Position provides a unified system for managing cash flow for both the Client and Partner.

By consolidating income, expenses, and transactions into a single sheet, it simplifies tracking for multiple income streams and superannuation. This approach allows for efficient management of surpluses and deficits while supporting shared financial goals.

The centralised system enhances financial planning by making monitoring, analysing, and optimising cash management easier.

You can view individual values for the Client, Partner, SMSF, or any Business or Trust entities, and their Superannuation Accounts by selecting options from the drop-down menu.

📌 Note

If the client is unpartnered all the options will be available from the main sheet, and additional entities such as Trusts or Businesses will be found within the dropdown

This allows you to isolate and analyse specific financial data for each entity, ensuring a clear and detailed understanding of their contributions and cashflow dynamics.

The Annuity Tab sits within the Individual Client Tabs

Adding Annuities in Cashflow

Annuities entered in the Fact Find > Financial > Income > Annuities section are displayed in the Annuities tab in Cashflow 2.0.

you can add Annuities for modelling by selecting the blue Plus+ button at the bottom right corner of the Annuities tab.

You can also use the Add button on the top right to add annuities.

Use the fields within the annuity form to establish a new annuity.

Annuity Form Details

Start Balance	The initial balance amount to commence the annuity.
Annuity Type	Choose between Term-Based or Lifetime annuities.
Owner	Specify the owner, either Client or Partner.
Start Date	The commencement date for the annuity.
Payment	The regular income payments received from the annuity.
Payment Indexation	Annual indexation rate applied to the annuity payment amount.
Rate of Return	The overall return rate expected from the annuity.
Purchase Price	The initial purchase price of the annuity.
Reduced Purchase Price	Represents the purchase price minus deductions for Age Pension calculations.
Deductible Amount	Reductions to annuity income considered for the Age Pension Income Test.
Assessment to Asset Test	Specifies the annuity value deemed for the Asset Test.

Advanced Options

Open the Advanced options to trigger additional calculations.

Purchase Price($)	The initial amount invested in purchasing the annuity. Used to calculate the annuity's value over time and its impact on cashflow and other financial metrics.
Reduced Purchase Prices($)	Represents the purchase price after deductions for Age Pension calculations. This value is crucial for determining how much of the annuity’s purchase price is excluded from the Asset Test.
Deductible Amounts($)	Specifies the portion of annuity payments excluded from income calculations for the Age Pension Income Test. Helps ensure accurate Age Pension eligibility and entitlement projections.
Asset Test Assessment(%)	The percentage of the annuity value deemed assessable for the Age Pension Asset Test. Adjust this field to reflect specific rules or client requirements for asset assessment.
RCV(%)	Represents the percentage of the annuity’s initial value retained as a closing balance at the end of the term. If, for example, the RCV is set to 10%, the calculation will ensure 10% of the annuity remains at the end of its term.

You can also use the additional toggles beneath the Advanced Options to further customise the annuity.

Existing	When this toggle is enabled, the annuity is treated as an existing asset, and no outflow is deducted from the Cash Account Sheet for its purchase. Use this toggle for annuities that have already been purchased or are part of the client’s current portfolio but have not been entered into the Fact Find.
Deemed	Activating this toggle includes the annuity in Age Pension calculations, affecting the Income Test and Asset Test. This ensures the annuity’s value and income are appropriately factored into pension eligibility assessments. If the toggle is disabled, the annuity will not influence Age Pension calculations.
Account Based	When selected, the annuity is treated similarly to an account-based pension, with its payments and structure aligned to specific rules for this category. This toggle is useful for annuities structured with features or terms resembling account-based pensions.