Means testing for lifetime income streams

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CPD Quiz

This activity has been accredited as continuing professional development by the Financial Planning Association of Australia but does not constitute FPA’s endorsement of the activity. This activity has been assessed as being equivalent to 0.25 CPD hours.

Question 1 of 6

John is 68 and uses $200,000 to buy a lifetime annuity on 1 July 2019. This annuity complies with the Capital Access Schedule (CAS). What will be the assessed asset value under the assets test?

$200,000 until age 84 and then $120,000 thereafter

$80,000 until the annuity ceases

$120,000 until age 84 and then $60,000 thereafter

Nothing will be assessed under the assets test