The Savings screen defaults that appear when you first enter this screen come from the Cash Flow Management screen. This identifies the savings that the client is currently doing.
You can edit these default savings records by identifying any employer match contributions that might be applicable. For example, say your client is a member of a defined contribution pension plan or money purchase pension plan. In that case they might have identified contributions that they personally make on the Cash Flow Management screen, but often these plans include contributions made by the employer to the plan on the employee’s behalf. On this screen when you edit a record, you’ll find a field where you can enter the employer contribution.
You have the ability to setup tiered savings and apply different employee and matching amounts. To do this you would click on the edit beside the saving record. When the detailed savings screen appears this is where you can adjust your savings record and also add in any tiers you wish for this client by clicking on the “Add” button.
This screen also gives you the ability to incorporate new savings that will begin at some specific time in the future. For example, the client might currently have a mortgage that will be paid off in 5 years. At that point in time, they will be in a position to start saving more than they are today. You can incorporate in a future savings record indicating that starting in 2010, $10,000 will start to be saved ending at time of retirement. To add future savings you would click the “Add” link, which will bring you to the “Detailed Savings Information” screen. This is where you will identify the type of savings this would be.
Employee Amount- This is where you would identify the amount the client is saving.
Employer Amount- This is for when you would have employer contributions. The amount that the employer contributes would be inputted here. This is also where you can identify a government grant.
To / From Year- These fields would be when you would like the savings to start and to end.
Index Rate – Defaults to the inflation rate set on the Personal Information screen but may be adjusted on each savings as required.