The purpose of this tool is for advisers to give a rough feel for how much their clients will need to invest and save to ensure they’re living the life they want to when it comes to retirement. It's simply a financial calculator to provide a guide and motivate clients to engage with their advisor to delve deeper into their financial requirements with appropriate financial planning software and issuing of applicable SOA's and the like.
It does not take into account all the circumstances of your client and so should be accompanied with an appropriate disclaimer when providing to a client.
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Variables & Input Fields
Variable Name | Description | |
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1
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Current Age | Represents the current age of the client. |
2
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Current Savings | Represents the client's current balance within super. |
3
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Age At Retirement | Sets the age in which the client wishes to retire. |
4
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Life Expectancy | Sets the age in which the client expects to live until. |
5
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End Balance | Defines any balance that the client wants to have leftover after their life expectancy to leave to any beneficiaries of their estate. |
6
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Desired Income in Retirement | Represents the annual income that the client would like to live on during their retirement. |
7
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Graph | Demonstrates the results of the tool via a graph. |
8
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Investment Return | Sets the parameters for the expected investment return on pre and post-retirement income. |
9
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Tax Rate | Sets the parameters for the expected tax rate on pre and post-retirement income. |
10
|
Balance Required at Retirement | This represents the total funds required in super at the point of retirement based on the above variables. |
11
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Annual Deposit Required | This represents the annual contribution required in order to meet the Desired Income in Retirement and End Balance amount. |
How do I use it?
The idea is that you take your client through this to demonstrate and work with them with the funds that they already have, to ensure that at the point of retirement, they’ve enough funds to comfortably live their desired lifestyle.
- Work through each variable inviting the client to set the various figures, leading with explanations as required.
- Once you’ve filled in each of the variables, we’ll calculate two figures for you at the bottom of the screen. The first, being the Balance Required at Retirement. This is the total funds required at the point of retirement based on the desired annual income variable, whilst also factoring in the estimated pre and post-retirement investment return and associated tax consequences.
- The second of our calculations will be the annual deposit required to fund the desired annual income amount – Again, this is largely dependent on the investment returns both pre and post-retirement along with the associated tax rates. With this information, you can help your clients plan for their retirement and advise on how they should be making their annual contributions to ensure that the desired income will be achievable from the point of retirement.
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You have to save your instance before you can print it. |
Related Links
Menus & Shared Elements | This support article covers all the menus and shared elements used throughout AccountKit |
Document Management System (DMS) | Learn how to connect and manage your DMS |
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