The Inflation Adjustment Insight temporarily applies a user-defined adjustment to your plan’s inflation rate for a set period. This feature helps model economic stress scenarios like high inflation or even deflation. Once the period ends, the software reverts to your original inflation assumptions, maintaining the integrity of your long-term projections.
Customizable Inputs
When configuring the insight, you can set:
Timeline Selection Choose when the inflation adjustment should apply. You can define a custom start and end year or select a common timeframe like 5 or 10 years.
Additional Annual Inflation Enter the number of percentage points you’d like to add or subtract from your plan’s base inflation rate.
Example: If the plan’s inflation is 3% and you add 2%, the adjusted inflation rate for the selected period becomes 5%.
✅ Note: The defined period includes both the selected start and end years. You can also model negative inflation (deflation).
Output and Results
Once applied, the Inflation Insight produces several valuable metrics:
Net Worth See how the client's projected net worth changes by the end of the plan under the inflation adjustment scenario.
Shortfall This value shows any accumulated shortfall throughout the plan, similar to how we model shortfalls in Long-Term Care scenarios.
Adjusted Rates Display A collapsible section shows the adjusted inflation rate alongside the original dashboard rate, making it easy to communicate changes.
As with all Voyant insights, you can compare the modified results against the original plan to demonstrate the impact of inflation.
What’s Affected by the Insight?
Not all plan elements are adjusted by the Inflation Insight. The table below outlines what is and isn’t affected:
Adjusted for Inflation
Not Adjusted for Inflation
Goals and Expenses (excluding Legacy Goals)
Social Security Benefits (CPI-based)
Real Money calculations
Income streams not tied to inflation
Pensions and Annuities—only if they escalate by CPI, RPI, or LPI
Investment/Savings accounts
Tax table assumptions
Insurance types
Pro Tip for Advisers
Use this insight to stress test a client's plan and guide strategy conversations, such as increasing cash reserves, adjusting spending, or exploring inflation-protected products. It’s a valuable tool for demonstrating your value as a proactive planner.
Report
This insight has a complimentary report that can be run for it after the insight insight has been run. To run the report first run the insight and then go to the Reports section
and select from the Insight Reports section the Inflation Adjustment Report
