What if: Saving more for Retirement - Global

In this training we will walk you through how to model additional retirement savings in your clients plan. 

Transcript

This training covers how to present strategies to clients for increasing retirement savings in the pre-retirement years. You will learn how to use Voyant to create “What If” scenarios that demonstrate the impact of increased savings on retirement goals.

Client Example:

  • A couple in their 40s

  • Goal: Secure spending in retirement

  • Challenge: Current plan meets spending goals only until ages 87 and 83, after which assets run out


Learning Objectives

By the end of this training, you will be able to:

  1. Identify Surplus income that can be directed toward retirement savings.

  2. Create a “What If” scenario to increase retirement contributions.

  3. Analyze the impact of the additional savings on retirement outcomes.

  4. Demonstrate the long-term effect of saving all Surplus income.

  5. Use insights to communicate actionable recommendations to clients.


Step 1: Review the Base Plan

  1. Open the client plan and review the spending goals and current retirement projections.

  2. Identify when the clients will begin to run out of assets:

    • Example: Ages 87 and 83 for this couple.

  3. Observe the Total Need line (black line) in the chart:

    • Represents current spending levels including living expenses, contributions, and estimated taxes.

  4. Check Surplus income:

    • Determine if clients have funds not currently allocated toward expenses or savings.


Step 2: Run the Annual Savings Insight

  1. Navigate to Insights → Annual Savings Insight.

  2. Input the retirement target or desired spending levels.

  3. Voyant calculates the recommended annual savings needed to eliminate shortfalls (e.g., $43,460/year).

  4. Compare the recommended savings to available Surplus income:

    • Confirm the clients have enough Surplus to meet the suggestion.


Step 3: Implement a Targeted Savings Recommendation

  1. Open an investment account in the client plan.

  2. Set a new annual contribution:

    • Example: $50,000 per year until retirement.

  3. Define the end event as the client’s retirement date.

  4. Click Done and observe the updated plan:

    • The red shortfall should disappear.

    • Assets show a cushion at the end of the plan.

  5. Compare plans using Chart View:

    • Base Plan vs. Recommendation Plan

    • Highlight the difference in outcomes (e.g., running out of assets vs. ending with a surplus).


Step 4: Explore Saving All Surplus Income

  1. Create a new What If Scenario → Copy Base Plan → Name: “Save All Surplus.”

  2. Two methods to save Surplus in Voyant:

    • Plan Settings → Calculation Settings → Save all Surplus income

    • Transfers: More precise allocation

      1. Go to Transfers → All Surplus

      2. Transfer to a specific account (e.g., Taxable Investment)

      3. Set transfer recurring until retirement

      4. Ensure transfer before paying expenses is set to No

  3. Click Done.

  4. Observe the Total Need line move to the top of the chart.

  5. Check assets at the end of the plan (e.g., $11 million).


Step 5: Run Retirement Spending Insights

  1. Navigate to Insights → Retirement Spending Insight.

  2. Compare the potential spending capacity in retirement:

    • Base Plan: $85,000/year

    • Save All Surplus: Much higher spending capacity

  3. Use this to illustrate the value of increased savings to clients.


Step 6: Presenting Recommendations to Clients

  • Show comparisons between:

    • Base Plan

    • Targeted Savings Plan

    • Save All Surplus Plan

  • Discuss:

    • How small increases in pre-retirement savings can prevent shortfalls.

    • How allocating Surplus income strategically can enhance retirement outcomes.

    • The importance of balancing current spending with future goals.


Step 7: Getting Support

  • Questions or client-specific issues?

    • Click on the client’s name (top right) → Request Support

    • Enter your question in the text box and share client access.


Key Takeaways

  • Identifying and directing Surplus income can help clients meet retirement goals.

  • “What If” scenarios demonstrate the tangible impact of increased savings.

  • Using insights, advisors can present multiple strategies, showing the value of their recommendations.

  • Comparing plans visually helps clients understand outcomes and motivates action.