Assumptions

• Investor purchases an income stream equivalent to Telstra Super RetireAccess® and it is their only taxable income.
• Investor does not convert any part of their income stream to a lump sum or make additional contributions after retirement.
• Calculations are in today's dollars based on a 'real' rate of return of 4% pa after 3% pa inflation (total return of 7% pa).
• Taxation has been taken into account on the basis that the superannuation benefit used to purchase the income stream has no tax-free element.
• Calculations are based on personal income tax rates that apply from 1 July 2010 and allowance has been made for tax payable on the income payments (assuming the 15% offset is applicable).
• The capital is virtually expended at age 85.
• The figures in the table are based on a full financial year and are applicable at the commencement of an income stream.
• Future performance is not guaranteed.
• Figures are an estimate only.