Planit:Introduction to the Pensions and Other Revenues Screen (Canada)

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In this Video you will Learn...
What do I enter on the Pensions and Other Revenues Screen?
• Purpose of the screen
• Overview of data entry required

Keep on Track! Continue training on...
Life Planning Integrated Planning
Modular Planning Getting Started
Pensions and Other Revenues Screen

Other Related Topics
Add a Revenue Default Revenues Pensions and Other Revenues Graph


The material in this video may differ somewhat from what you see on your site due to difference in version, jurisdiction, corporate content or access level. Regardless of these differences most of the core functions are consistent across all sites, so you'll be able to benefit by and large from what you learn in this video.


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The Pension and Other Revenues screen is where you’ll record any revenue streams anticipated over the course of the client’s lifetime. When doing retirement planning, recognition of expected pension benefits is critical. This includes both government sponsored pension plans as well as company sponsored plans.


The screen will be pre-populated with any government benefits that are applicable as illustrated here.


The CPP and OAS is based on your entries on the Planning Assumptions screen. You will also notice it will carry over any salaries that were entered in on the Cash flow screen.

Other Revenues - Aside from government benefits, you might add an expected inheritance, residence downsize capital, a defined benefit pension benefit or any other revenues the client may expect to receive.

Screen is Now Tab Driven: In the past if you wanted to see how records for the death and disability scenarios were affected by your entries, you would use “+” sign to expand the screen. However in the expanded view, the screen could be difficult to read and it also often extended beyond a single screen view and thus scrolling up and down was required. We have eliminated these issues by changing the screen to make use of tabs, as can be seen above. You now can move from one scenario to the next by merely clicking on the appropriate tab.

Easier to Make Edits: In previous versions, when you added a record to the Pension screen, to edit your record, you had to always open the record using the “Edit” button. While you still can edit the record in this way, we have made the more commonly edited fields accessible right on the screen without having to open the record. Thus you can now edit the description, the recipient, the amount, the Start Year, End Year and inflation assumption right on the screen. This is more convenient than having to open each record, edit and re-save.

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More Transparency of Assumptions: In the past the records displayed on this screen were only the salaries and government benefits such as CPP and OAS that the system created as well as any items that you entered while on the Pension screen. However, behind the scenes we were often doing more than what was visible on the screen. Things like:

  • Payout of life insurance benefits
  • Payout of disability insurance benefits
  • CPP Death Benefits
  • CPP Survivor Benefits
  • Survivor Benefits on Defined Benefit Pensions

With this net tab structure, you can now view all revenues from all sources for each scenario without having to run a long term cash flow. This transparency even displays the Net Present Value (NPV) of each revenue stream similar to how it’s displayed on the long term cash flow report. We also separate revenue types into several groupings separated by a coloured bar. In the example above we see a separation between the first six records and the Whole Life Insurance paid out on Mark’s death at mortality. Then there’s another separation between the insurance records and the user created records. These separations segregating the different types of revenue records are designed to make the screen more readable.

Ability to Add Revenues Unique to the Modeled Scenario: In the screen shot above you’ll note that in addition to the Current scenario and the death and disability scenarios, you also have a tab for the “Model” scenario. This tab allows you to add revenue streams that will ONLY be used in the modeled scenario. An example of this might be where the client has some large shortfalls and indicated they would sell their cottage or perhaps downsize their residence if necessary. On the “Model” tab you can now add a revenue stream for “Sale of Cottage” or “Residence Downsize” and thus recognize in the ultimate strategy for the client that this additional action by the client is needed in order to create a workable strategy.

Increased Intelligence on When Revenues Begin and End: One of PlanPlus Planit’s most powerful and time saving features is the AutoModel TM process. By setting your client’s AutoModel thresholds, you provide the system with the information it needs to do up to 100 “what if” scenarios with the ultimate objective being to find a combination of behaviors changes that result in an achievable strategy. One of the things considered in the Auto Model process is the client’s willingness to postpone their target retirement until they are older. If this indeed is necessary, it can introduce a variety of issues because a postponement of the retirement date will affect your assumptions on when pensions start, when salaries end, when goals happen if they are tied to the retirement date. These are just a few examples of the issues that can arise when you change the retirement age. To deal with this we had a feature associated with all revenue streams and all goals called “Model As”. This allowed you to define if your revenue stream or goal was to “Start At Retirement” or if it had a fixed start date. This gave the auto model the intelligence to defer the start date of the revenue stream or goal if indeed the client had to work longer.

We have enhanced the intelligence to apply not only to the “From Year” but also the “To Year”. Below you’ll see a screen shot of the detailed pension record. You’ll note that we now have drop down lists for both the “From Year” and the “To Year” where you can specify how both of these variables are to be treated should the Auto Model make the client’s work longer. Making these two fields more intelligent also helps if you decide to make changes on the “Planning Assumptions” screen. For example if you originally set the target retirement Age to 55 and the mortality assumption to 90, and then later changed these to 60 and 95 respectively, you would have had to check any of your records on the Pensions or Goals screen to be sure they aligned with these changes. Often manual edits were necessary to realign. With these two new drop downs, such changes will ripple through to the both the Pensions screen and the Objectives screen so that all start and end dates are kept in sync.

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Since the pension record is entered in today’s dollars, based on the client’s current income, you would set the Index Rate Prior to Start Date to the default inflation rate as seen above. This will recognize that the client’s income between today and the actual start of the pension benefit would index with the general inflation rate used for the client. You would then set the Index Rate From Start Date to either 0% if the pension is non-indexed or the specified maximum index rate . . . such as 1.5% as seen above. This will recognize the full indexation of the benefit for the years leading up to retirement and the lower index rate or zero indexation upon receipt of the benefits. Note that if a pension is indexed then it’s recommended you use the “Default” inflation flag for both the pre and post periods.