The Retirement Module is an easy to use, comprehensive retirement modelling tool for singles or couples.

It allows you to map your clients financial position in retirement. This tool is best utilized for clients who may be retiring; now or within the next 10 years. The Retirement Module will show your client whether or not they can afford to retire based on certain circumstances that you input. 

Features include:

1.      Model how long your client’s funds will last in retirement

1.      View cashflow and capital projections

1.      Compare existing and recommended retirement scenarios

1.      Outputs include access to comparison graphs for both income and capital comparisons

Accessing the Retirement Module

1. Inputs- In this section you will input your clients information into the settings, existing and recommended tabs. 
   
2. Outputs- Will allow you to analyze the results of your inputs and compare between your existing scenario and recommended scenario from a cashflow and capital perspective. 
   
3. Summary- Will summarize and demonstrate the value of advice to your client.
   
4. Advice- Allows you to create a retirement report directly from the module.  
   

Fact Find

1. Personal Details (1) - Retirement Age (2 and 3)
   
2. Personal Details (1)- Complete Risk Profile (2 and 3) and Salary (4 and 5) 
   
3. Add a Superannuation account in Super, Pension and Investments Tab 
   
4. Add a Residential Property within Personal Assets and Liabilities (if they own residential property)

INPUTS

Settings

To modify the salary's indexation rate or to modify the salary rate for future financial years select 3 vertical dots next to the salary:                                                    

The software will determine their homeowner status depending on their assets. If you have added in residential property within the fact find section this will default to HomeOwner. You can change this status by choosing a more suitable option within the dropdown. 

To add in further personal assets such as a Car and Contents simply complete the Personal assets field with the total amount of these assets. Again you can set indexation and specific values within specific years by selecting the 3 vertical dots. 

You can also add in any other financial investments that your client/s possesses outside super and pension. 

Existing Scenario

1. Capital amount (in red) 
   
2. Desired income (in yellow)- this is set by the income required field you set (see above). This yellow line will be flat if you have selected present values in the settings tab. If it is increasing upwardly or downwardly, it is showing future values. 
   
3. Income (blue line)- is the actual income that the client is receiving- it shows you whether the client meet his retirement goal 
   

1. Your client here is receiving a salary income which is above their desired income 
   
2. Here your client has retired and rolled to pension and their pension payments meet desired income 
   
3. At this point, your clients Retirement Pension has run out and they no longer meet their desired income. Their income is being funded by the Age Pension (which is below their desired income)
   

Cover expenses- Having this field ticked means you want the clients pension payments to match the clients required income amount. If the amount you set in income required above is below the minimum amount then the system will override and put the minimum. Unticking this means you are telling the system to ignore the income required and that you want to set your own amount. 

From the drop down you can also select 'Exhaust pension at age' which is you telling the system to ignore the income required and draw down an amount until their pension runs out- you can also set an indexation amount (mine is set to 2.40%):

Before you move onto the Recommended Scenario make sure that you select 'Copy to Recommended' to ensure that your recommendations in the next tab (Recommended Scenario) are based on your clients existing situation (and you don't have to re-enter information- you only have to input your recommendations). 

Recommended Scenario

Allows you to make changes to your clients current situation (Existing Scenario) to see how this affects their retirement goal. 

If you have selected 'Copy to Recommended' in the existing scenario, you will note that your Recommended Scenario page will look the same as your existing scenario page before you input your recommendations. 

Recommendation Example 1) Your client would like to retire at a later date (later then date set in existing scenario). Naturally, this change will mean that your client will be able to accumulate more money within their super before rolling over at a later date.

To do this, you will simply update retirement date in the below field.  

Depending on how far into the future you put this new date, you will see a difference in the way your graph looks from an income and capital perspective after making this change as well as to the age that your ABP will run out. 

Recommendation Example 2: That your client commence Salary Sacrifice of $5000 per year, (concessional cap considered) and a Once-off Non-Concessional Contribution of $40,000 (non-concessional cap considered) to help boost their retirement savings. 

To arrange Salary Sacrifice select 3 vertical dots in the Concessional ($ p.a.) field (1- Snapshot 1) and then complete the Value field, Indexation and period timeline (1- Snapshot 2)

To arrange your once off NCC of $40,000 select 3 vertical dots in the Non-concessional ($ p.a.) field (2-Snapshot 1), select show months (1- Snapshot 3) and in the month you wish to make your contribution input the value 40000 (Snapshot 4) before pressing ok. 

                                                         

Recommendation Example 3: After changing your clients retirement date and making these contributions to enhance your clients retirement savings, your client may decide that he can afford to spend more in retirement. Therefore, your recommendation is to increase the income desired. To input this recommendation simply click on the 3 vertical dots in the Income Required field and select Annual income required to input your new value:

To discuss process of inputting other recommendations or Retirement Module functionality, please contact 1300 882 938 for more guidance. 

OUTPUTS

Existing Cashflow and Existing Capital 

This will show detailed reflection of your clients cashflow and capital if they were to continue down their current path and not implement your recommendations. Obviously, these tabs are based on your existing scenario in your input section.

Existing Cashflow Tab

The highlight section shows that my clients will be in accumulation phase and be receiving a salary up until 2045/2047 (1). At this point they will roll to pension. 

The system will also calculate Tax and and surplus/deficit the client may have (2). The bottom line shows their desired net income. 

From 2045 onwards client commences Account Based Pension as well as their age pension (4). By scrolling across you will be able to see when your clients account based pension runs out. 

The graph at the top provides more information around what the income is made up of. The thick black line that runs through your graph is the income required that you set for your client in the existing scenario. The dotted line is the actual income that your client is receiving. My graph shows that this client will be able to meet his desired income for all years in this projection. 

Recommended Cashflow and Recommended Capital 

Outcome Analysis 

Will provide a snapshot of before (existing) and after (recommended) projection to show how the recommended scenario puts your client in a better position. In retirement. It looks something like this: Put simply this page is a clear comparison between the two scenarios.

In the top right corner we have a create report tab which allows you to generate a retirement report. By selecting it you can choose the years you would like to be displayed for projection purposes: .

You can generate this document as a word document or PDF. This report will pull through all the information from the retirement module.

Quick SOA 

To create a quick SOA. Simply click on Create quick SOA in the top right hand corner. 

Give your SOA a name and choose the relevant template. 

After selecting save you will then need to complete the 3 tabs to flesh out the information for your SOA- Objectives, Recommendations and Advice Fees 

When adding a recommendation the subtopic to focus on is 'Retirement Planning':

You will notice that a list of possible recommendations will come up for you to choose from- relevant to your client. Next to each recommendation is text written in brackets. This relates to the section of AdviceOS that you would like the system to pull information from. If you have used only Retirement Module for your modelling you will only select the text next to retirement options- for example:

To ensure you pull through retirement module information you will need to select options that are next to "(Retirement)". 

To generate the SOA after you have built in your objectives, recommendations and advice fees you will need to select Generate SOA on the top right: 

The number 1 will appear above your name in the top right like so:

Click on this to access your SOA in the list of recent reports (ensure you press refresh for the SOA to appear)

Please note that all tables and graphs that are appear in the Retirement module will appear in the Appendix section.

 

For any further questions on this module please contact support:

By Phone: 1300 882 938

By Email: info@midwinter.com.au