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Overview
You can now model non-super annuities in Holistic Cashflow scenarios.
You can add an annuity as a new, dedicated asset category called Investment – Annuity, making it easier to model lifetime and fixed term annuities as part of a client’s cashflow strategy.
Once an annuity has been added, Holistic Cashflow automatically reflects the annuity across cashflow tables, graphs, taxation, Age Pension outputs and the Financial Summary. This helps provide a more complete view of how annuity income and balances affect the client’s overall financial position.
For this release, annuity modelling is available for annuities that are added directly into the scenario. This includes both:
✔ An existing annuity that you manually add to the scenario
✔ A new annuity recommendation that you create as part of the scenario modelling
So, if your client already has an annuity and you want to include it in the modelling, simply add it directly in Holistic Cashflow as an Investment – Annuity.
Once added, Holistic Cashflow will include the annuity across relevant outputs, including cashflow tables, graphs, tax calculations, Age Pension calculations, and the Financial Summary snapshot.
⚠️ Important
As part of this release phase, annuity modelling is limited to annuities that are added directly in Holistic Cashflow.
This release supports non-super lifetime and fixed-term annuities only. Super annuities are not supported in this phase.
Annuities recorded in Fact Find > Financial will not flow through as annuity records at this stage. This is due to related data and integration dependencies being completed as part of the broader release cycle.
Annuities are added directly within Holistic Cashflow scenarios and are not automatically brought through from Fact Find. Before reviewing scenario results, confirm whether the client holds any existing annuities and add them manually where required. This helps ensure the client’s financial position, income, tax and Age Pension outcomes are complete.
Access
You can add an annuity from either Financial Summary or Cashflow, depending on whether you are modelling an existing annuity or a new recommendation.
Add an existing annuity from Financial Summary
To add an existing annuity, go to Financial Summary, select the Assets tab, then choose Add New.
Enter the annuity name in the blank field that opens, then select the Category dropdown.
From the category dropdown, select Investment – Annuity.
After selecting the annuity category, continue to enter the annuity details.
This includes the owner, cost base, and current balance.
Once the information has been entered, ensure the toggle in the Include in calculation column is switched to on.
Add a new annuity recommendation from Cashflow
To model a new annuity recommendation, open the scenario and navigate to the Cashflow section. Select the Investments tab, then choose Create New.
Select the owner, enter the relevant date, set the type to Annuity, then add a name for the annuity and select Apply.
After creating the annuity, complete the main annuity details in the right panel of the window that opens.
For a new annuity, the balance represents the lump sum amount being invested.
Enter the term, return rate if required, payment amount, payment frequency, indexation and next payment date. Once saved, the annuity will be included in the cashflow scenario.
Annuity details
All required information is entered on the main annuity screen. There are no advanced settings at this stage, keeping the process simple.
Field | Description |
Balance | For existing annuities, enter the current balance. For new annuities, this represents the lump sum investment. |
Commencement Date | Used for existing annuities to reflect when annuity payments began. |
Investment Term | Choose either Lifetime or Fixed Term. Fixed terms can be entered from 1 to 99 years. |
Residual Capital Value (RCV) | The value returned at the end of a fixed term annuity. This field is automatically disabled for lifetime annuities. |
Withdrawal Period | Available for lifetime annuities only. This allows you to define how long payments are received. |
Investment Return Rate | Enter the expected return using either Effective Annual Rate or Nominated Interest Rate. This field is not required for lifetime annuities. |
Payment Amount | The regular annuity payment amount received by the client. |
Payment Frequency | Choose from Monthly, Quarterly, Half Yearly or Yearly. |
Indexation | Choose from None, CPI, AWOTE or Other. |
Next Payment Date | Indicates when the next payment, or first payment, will be received. |
Outputs and reporting
Once an annuity has been added, Holistic Cashflow automatically includes the annuity in the relevant scenario outputs.
Regular annuity payments appear under Other Income in the Income & Expenses section, while RCV withdrawals are reflected under Asset Withdrawals.
The annuity balance is included under Investments in the Assets & Liabilities table. Assessable annuity payments also flow into tax calculations automatically, so you do not need to manually adjust tax outcomes.
For Age Pension assessments, annuity assets are split between amounts included and excluded from deeming where applicable. Annuity income is also captured in the income test, helping provide a complete view of the client’s Age Pension position.
📌Note
Income, tax and Age Pension impacts are calculated automatically once the annuity has been added. You do not need to manually enter annuity income elsewhere in the scenario.
Graphs and visualisations
Annuity values are also included in Holistic Cashflow graphs. The balance graph shows how the annuity balance changes over the term.
While the payment breakdown graph separates the principal and interest components of each payment made during the year.
FAQs
What types of annuities can I model?
What types of annuities can I model?
You can model non-super lifetime annuities and fixed term annuities.
Where do I add an annuity?
Where do I add an annuity?
You can add an existing annuity from Financial Summary > Assets > Add New > Investment – Annuity. You can add a new annuity recommendation from Cashflow > Investment > Create New > Investment – Annuity.
Do I need to manually add annuity income?
Do I need to manually add annuity income?
No. Regular annuity payments are automatically reflected under Other Income in the cashflow outputs.
Do I need to manually adjust Age Pension rules?
Do I need to manually adjust Age Pension rules?
No. Age Pension asset and income test impacts are calculated automatically.
Can I model both existing and new annuities?
Can I model both existing and new annuities?
Yes. You can model both existing annuities and new lump sum investments. For existing annuities, the Cost Base in Financial Summary is the Original Purchase Price.
How are Age Pension impacts handled?
How are Age Pension impacts handled?
Annuities flow into the Age Pension outputs automatically. The asset and income test treatment is applied based on the annuity details entered in the scenario.
How are annuity payments taxed?
How are annuity payments taxed?
Assessable annuity payments flow into tax calculations automatically.
Where can I see annuity results?
Where can I see annuity results?
You can see annuity results in cashflow tables, graphs, Age Pension outputs, tax summaries and the Financial Summary snapshot.
Are annuities shown in charts?
Are annuities shown in charts?
Yes. Annuities are shown in charts, including balance graphs and payment breakdown graphs. These help show annuity payments, principal and interest components, and balance changes over time.
Can annuity payments be indexed?
Can annuity payments be indexed?
Yes. Indexation options include CPI, AWOTE and Other. You can also select None if indexation does not apply.
Will annuities automatically flow from Fact Find into Holistic Cashflow?
Will annuities automatically flow from Fact Find into Holistic Cashflow?
No. Non-super annuities need to be added directly within the Holistic Cashflow scenario. They are not automatically brought into the scenario from Fact Find.
Why do I need to add an existing annuity in the scenario?
Why do I need to add an existing annuity in the scenario?
Adding the annuity directly in the HCF scenario ensures the client’s financial position is complete. Once added, Holistic Cashflow can include the annuity balance, payments, tax treatment and Age Pension impacts in the scenario outputs.
What happens if I do not add the client’s existing annuity?
What happens if I do not add the client’s existing annuity?
If an existing annuity is not added to the HCF scenario, the client’s position may be incomplete. The annuity balance, regular payments, tax impact and Age Pension treatment may not be reflected in the cashflow results.
Where should I add an existing annuity?
Where should I add an existing annuity?
Add an existing annuity from Financial Summary > Assets > Add New, then select Investment – Annuity as the asset category.
Should I add the annuity before reviewing scenario results?
Should I add the annuity before reviewing scenario results?
Yes. Add any existing non-super annuities before reviewing or relying on the scenario outputs. This helps ensure the cashflow tables, graphs, tax summaries and Age Pension results reflect the client’s full position.
What information should I collect before adding an annuity?
What information should I collect before adding an annuity?
You should confirm the annuity owner, current balance, commencement date, investment term, before tax payment amount, payment frequency, indexation, next payment date and any residual capital value. This information is usually available from the client’s annuity statement or product provider.
Can I use Fact Find information to help complete the annuity details?
Can I use Fact Find information to help complete the annuity details?
Yes. You can refer to any information captured during the Fact Find process, client discussions or supporting documents. However, the annuity still needs to be entered directly into the Holistic Cashflow scenario.
Can I add both existing and recommended annuities?
Can I add both existing and recommended annuities?
Yes. Existing annuities can be added from Financial Summary, while new recommended annuities can be added from Cashflow > Investment > Create New.
Will the annuity be included in Age Pension calculations once I add it?
Will the annuity be included in Age Pension calculations once I add it?
Yes. Once the annuity is added to the scenario, Holistic Cashflow will apply the relevant Age Pension asset and income test treatment.
Will annuity income be included in tax calculations?
Will annuity income be included in tax calculations?
Yes. Assessable annuity payments will flow into the tax calculations automatically once the annuity has been added to the scenario.
Do I need to manually enter annuity income elsewhere?
Do I need to manually enter annuity income elsewhere?
No. Once the annuity has been added, regular annuity payments are reflected automatically in the scenario outputs. Avoid entering the same income separately, as this may duplicate the client’s income.
How can I check whether the annuity has been included correctly?
How can I check whether the annuity has been included correctly?
Review the annuity balance under Investments in the Assets & Liabilities table. You can also check Income & Expenses, tax summaries, Age Pension outputs and the annuity graphs to confirm the results are appearing as expected.
Are super annuities included in this release?
Are super annuities included in this release?
No. This release supports non-super annuities only. Super annuities are not supported in Holistic Cashflow annuity modelling at this stage.