To get the most out of the retire income planner there are some helpful points you can use.
Number of Years – This shows the number of years for the plan, if you need a shorter time frame you can reduce the years down to a custom number to suit the graph and client.
Number of Clients – This is used to toggle between a graph for 1 client and 2 clients, this can be used to create a joint plan which utilises both incomes and expenses to show a couple how they can retire and at different times.
Indexation – This is used to highlight the affect of inflation on the income you can set this to 0 if you want to use a level income plan, you can also reduce the growth to discount inflation if you needed too.
Taxable Retirement Pot – This is the taxable side of the clients retirement fund, this should include anything which incurs income tax when drawn on such as crystallised funds.
Tax Free Retirement Pot – This is the tax free side of the clients retirement pot available for drawdown, this should include savings, tax free investments and pension lump sum which the client is happy to use to fund retirement, if you wanted to include a property then you can create an Ad-Hoc payment into the pot when this is expected to be sold or equity release is used.
Investment Growth – This is the expected investment growth after charges for the clients total wealth that they want to use for retirement.
Risk Rating – This will turn on the Stochastic modeling feature, select a risk rating from the drop down menu and then when the plan is ran it will run it with the stochastic plan on top of the simple plan, you can also change the Standard deviations used in your settings page.
Choose Income Type – This allows you to enter further down if you use a gross figure for the level of income required or if you want to enter a net amount of income after tax every month.
Salary – This is used for clients who are still in employment and wanting to work for a few more years before retirement.
Partial Retirement – This is used for when clients are going to reduce hours and income but still want a fixed income to top up from their pension pot, this can be used in conjunction with the full retirement to show clients who work part time then retire fully later.
Retirement Age – This is the full retirement age of the client, this needs to be set after partial retirement age if applicable, this can be set to any time before or after state pension age.
Other Pension – This is used for clients who have already drawn an annuity or have a DB pension in the background and is going to receive fixed income for life, you can tick to remove this from indexation if needed.
Other Income – This is any income which is monthly i.e. rental profit, this can also be removed from the indexation calculation.
Retirement Income Level – This is the sole or joint income level that the clients need to retire on, this is set further up if you want to enter the gross or net value.
Adjust Initial Income – You can adjust the income requirements for a client, you can use this to set a lower income level to sustain income into retirement but then use this to increase the income in say the first 10 years or adjust it however you like to.
Adhoc Transactions – This is used to add or reduce the retirement pot, this can be used to reflect one off expenditure or income from inheritance or property sales. This is also used to perform additional withdraws in the first few years of retirement.