Planit:Retirement Thresholds

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There is more than one way to learn about PlanPlus Planit. Check out our other Training options, from structured tracks around planning types, to self-serve, mix-and-match topics. In this Video you will Learn... How do I show that my client is willing to retire later or on less income if required? • Modelling Assumptions thresholds • Quick review AutoModel • Data entry • Adjust age before income box • Planning Alternatives for modular planning Keep on Track! Continue training on... Integrated Planning Life Planning Modelling Assumptions Screen Other Related Topics Retirement Age Tiered Retirement Lifestyle Introduction to the Modelling Assumptions Screen Savings Thresholds Modelling Assumptions Results Auto Model Process Planning Alternatives Retirement Goal Audit Ranking Objectives

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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Parameters Tab

If your clients indicate that they wish to work longer you would enter this information in the parameter called "Retire By". The field called "Minimum Retirement Lifestyle" is where you can indicate the minimum amount the clients would want to have as a lifestyle within retirement.

The "Adjust age before income" checkbox is for cases when the clients say "Well I would rather work longer in order to achieve my target income in retirement" if this is the case with your clients you would leave this checkbox checked. However if you clients would rather have their retirement lifestyle reduced and not work longer then uncheck this box.

The Auto Model process will compare the ranking of the other life goals with the ranking of the retirement goal to determine if any of these other goals should be eliminated. The analysis also recognizes cases were a high ranked goal cannot be achieved regardless of whether retirement is delayed or any other tactic. These unrealistic goals are removed.

If the client’s target age had a higher priority than the target income, the next step will be to increment the client and spouse’s ages one year at a time until their individual thresholds are reached. If the shortfall is eliminated at any time through this process the modeling will stop. If a shortfall still exists once the thresholds are reached, the process will continue.

If the clients target income was a higher priority than the target age, then the income target will be reduced in 20% increments until the threshold is reached. Again, should a surplus result at any time during this process, the modeling will stop.

Should both the income and age thresholds be reached and a shortfall still exist, as a last resort the system will continue to reduce the income target until a surplus is found. This means that a solution will be found regardless how unpalatable it might be. This is because this is the reality for the client. It helps them appreciate how unrealistic their objectives might be.