Lifelong Financial Forecasting

Many clients approaching retirement have a number of financial fears, the main one is that they will run out of money before they die. They have other fears such as the inability to fund long term care or whether gifts to children or grandchildren can be afforded. The use of our Lifelong Financial Forecasing service can relieve clients of these fears

How does it work?

We start off by looking at your current finances, in particular your income and expenditure and your assets (not your house – which is excluded from the calculations – so you always know that the house will remain an asset to pass on to the next generation)

Next we ask you how much income you need in retirement (this will be funded by a combination of income and drawing down capital). We divide retirement into three phases and discuss the level of income needed at each phase:

  1. Active phase when you spend money on travel and hobbies
  2. A quieter phase when maybe health concerns make you slow down and travel less
  3. When you may need to pay for increasing help in the house and eventually residential or nursing care

Then we pinpoint times when you will need extra capital or income, for example in the third phase of retirement when you may need long term care

Then we run a computer model which assumes that you do not die until say age 100 (or the last one dies at 100 if you are currently married)  The model makes certain assumptions about inflation and investment returns and  shows whether you will be able to fund your retirement at the level you require and shows the assets remaining at the end of the exercise

The forecast is based upon assumptions and needs to be re-run, say every three years to make sure it is on track. Do let us know if you are interested in a Financial Forecast for your retirement