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Question: hi i m currently doing an assignment of financial planning...

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I m currently doing an assignment of Financial planning and there is a question which is quite confusing.

The assignment is all about Superannuation funding and retirement planning.

Question + Description:

My age of retirement is 65 and my superannuation fund is $800,293 when I retire and I have accumulated that fund with my starting age of 25. However, upon my retirement at the age 65, my opening pension balance would be $800,293 and I have to make the first withdrawal at the age of 66 and the question says pension withdrawal (real income required) and the question description says that ( Assume you will require a real income of $40,000 per annum in present value dollars from your superannuation fund when you retire.) 

So, my total earning time period is 40 years to accumulate that fund $800,293 with 3% Inflation rate and 5% net returns on my superannuation.

My confusion, do I have to write the $40,000 amount straight away to make my first withdrawal of that amount when I retire or else do I have to calculate any FV or PMT? as Teacher is saying the assignment is quite specific and you have to assume $40,000 as real income per annum in present value dollars?


Can you please give me the answer to this question?


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