The Retirement Income tab configures what the client and spouse require for incomes during their retirement years.

The prompts for this screen are discussed below:

Method for Calculating Income Needed During Retirement

The income need method can either be a Percent of Income when the Individual(s) Retire(s) or Values expressed in Today's Dollars.  The Percent of Income... method uses a percent of income of the client's and spouse's income the time of their retirement.

Expected average inflation during retirement

Enter the average inflation during the retirement years.

Minimum balance of all cash accounts at life expectancy...

If a cash value is desired at life expectancy, for inheritance or risk reduction, enter the value here.

If the Percent of Income.. method is selected above, the following prompts will be visible.

Percent of income when the individual retires

This is the percent of income that the client needs at retirement. If a spouse is included in the illustration, there are three time periods:

1.Percent of income when only one person is retired (first retirement).

2.When both are retired (a percentage of the combined income at retirement, with inflation applied to the first retiree's retirement income).

3.When there is one surviving spouse (a percentage of the survivor's income at retirement, with retirement inflation applied).

Use predefined model

A pre-defined model may also be selected. This allows for income needs to change over retirement (e.g. 90% of income until age 70,  80% of income until age 80, and then 70% of income onward). Select the pre-defined model. The model may also be edited by selecting Setup/System from the main menu (or pressing the editor button on the Retirement Income Model prompt), then selecting Gap Analysis/Retirement Income Models from the navigator on the left. Click here for more information about editing retirement income models.

Create custom model with various levels of income

This allows for creating a custom retirement income model, similar to what is available in the pre-defined models, but custom to the participant's particular needs. Model must contain a First Retirement event.

If the Values Express in Today's Dollars method for retirement income, the following prompts will be visible.

When a spouse is included in the illustration, there are three income time-periods considered (as shown above).

The grid below the entered incomes allows for modifying the income as they mature in retirement.  In the chart above, the income need decreases by ten percent when the client reaches age seventy, and another ten percent when the client reaches age eighty.

Special Retirement Distributions

This table allows for creating special retirement distributions. They can be for single events, such as vacations; or they can cover monthly, long term care type events.