Did you know you can model "active" and "passive" retirement phases in Xplan’s Retirement Income solution by stepping down a client's target income at a specific future date?
Why? Most clients spend more in the first decade of retirement (the "go-go" years) than they do in their 80s. Modeling a flat $50,000 p.a. for 30 years often results in a strategy that looks less sustainable than it actually is.
How? You can set this in two places:
- In Proposal Set-up, use the Future spend reduction field to enter a dollar amount and the number of years after which the reduction starts.
- If you've already moved to the Modelling screen, click the Adjustments button. You can tweak the Future spending reduction right there without navigating back through the menu.
💡Pro Tip While you're in that Adjustments menu, you can also add a "One-off expense." Use this to provide a basic provision for future aged care entry or a significant lifestyle purchase like a caravan, which advisers often forget to buffer into the long-term sustainability score.
