use 16 to calculate how much is enough for retirement, page-8

Let's say you retired this month aged 55, and wanted an annual income stream of $80,000 indexed at 2.5%pa to last until age 88.

Then the required capital assuming net annual earnings of 5%pa net of tax would be $1.8 mill, therefore the factor to multiply your starting annual income would be 22.5. See below. (first year's income reads less than $80,000 only because start month is August.

	Age	Year ending	Account balance	Pension amount
1	55	30/6/2018	$1,808,366	$72,717
2	56	30/6/2019	$1,815,865	$82,000
3	57	30/6/2020	$1,821,642	$84,050
4	58	30/6/2021	$1,825,557	$86,151
5	59	30/6/2022	$1,827,464	$88,305
6	60	30/6/2023	$1,827,203	$90,512
7	61	30/6/2024	$1,824,611	$92,775
8	62	30/6/2025	$1,819,509	$95,094
9	63	30/6/2026	$1,811,713	$97,472
10	64	30/6/2027	$1,801,024	$99,909
11	65	30/6/2028	$1,787,234	$102,406
12	66	30/6/2029	$1,770,122	$104,966
13	67	30/6/2030	$1,749,454	$107,591
14	68	30/6/2031	$1,724,982	$110,280
15	69	30/6/2032	$1,696,445	$113,037
16	70	30/6/2033	$1,663,567	$115,863
17	71	30/6/2034	$1,626,056	$118,760
18	72	30/6/2035	$1,583,602	$121,729
19	73	30/6/2036	$1,535,880	$124,772
20	74	30/6/2037	$1,482,545	$127,892
21	75	30/6/2038	$1,423,232	$131,089
22	76	30/6/2039	$1,357,558	$134,366
23	77	30/6/2040	$1,285,115	$137,725
24	78	30/6/2041	$1,205,476	$141,168
25	79	30/6/2042	$1,118,188	$144,698
26	80	30/6/2043	$1,022,773	$148,315
27	81	30/6/2044	$918,726	$152,023
28	82	30/6/2045	$805,517	$155,824
29	83	30/6/2046	$682,584	$159,719
30	84	30/6/2047	$549,335	$163,712
31	85	30/6/2048	$405,144	$167,805
32	86	30/6/2049	$249,354	$172,000
33	87	30/6/2050	$81,270	$176,300
34	88	30/6/2051	$2,082	$81,270