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Retirement Income Tab |
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Retirement Income Tab |
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Retirement Income Tab
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Retirement Income Tab |
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Retirement Income Tab |
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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:
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.
Method for Calculating Income Needed During Retirement
TRAK implements a percent of income model for determining the client's required income in retirement. The percentage is the amount of the income of the person who is retired, or their combined income if both are retired. The income at retirement is calculated, and the percentage of that value is taken. Then inflation is applied to the income required.
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). |
| Note: | If there is a significant difference in the client's and spouse's incomes, a higher percentage (e.g. 200%) may be needed for the lower income. |
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.
| Hint: | Click the 'Copy Model' button, and select a model from the drop down list to start with a pre-configured model. |
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.
