Custom Preferences: Calculation Settings Guide UK

When completing the custom preferences worksheet you will need to provide TRUE or FALSE values in the Calculation Settings section. Here is a more detailed description of how these settings function within the software.

Transfer all excess income/credits to savings:

Transfer all excess income/credits to savings is usually set to FALSE by default as Voyant is normally set to assume unallocated surplus regular income is spent. You have the option, however, to switch this setting to TRUE and assume the opposite. Use this setting to assume leftover surplus regular income is saved, if you think this approach is appropriate for your clients.

Save all income after retirement:

Save income after retirement as with the above setting, is usually set to FALSE by default as Voyant is normally set to assume unallocated surplus regular income is spent. Switching this setting to TRUE allows you to assume that surplus is saved in the retirement stage. Prior to retirement, surplus will be assumed spent.

Grow All investment and retirement accounts using asset allocation:

This is usually set to FALSE by default. Switching this setting to TRUE automatically sets all investments and retirement accounts to be grown using asset allocations.

Note that when this is set to FALSE you have the option to grow accounts using either a fixed growth rate or to have growth derived from an asset allocation. Go to Dashboard and click on the Investment to change for that individual investment account.

When this setting is set to TRUE the Grow this account by dropdown will be set to Portfolio/Holdings in the Growth section of the Dashboard input screens and cannot be changed to Entered Capital Gains and Yield.

Grow all savings and cash accounts using 100% cash allocation:

This is usually set to FALSE by default. Switching this setting to TRUE automatically sets all savings accounts to be grown using a 100% cash asset allocation.

Note that when this is set to FALSE you have the option to grow accounts using either a fixed interest rate or to have growth derived from a 100% cash asset allocation. Go to Dashboard and click on the Savings account to change for that individual account.

When this setting is set to TRUE the Grow this account by dropdown will be set to Portfolio/Holdings in the Growth section of the input screens and cannot be changed to Entered Interest Rate.

Crystallise final salary before money purchase:

This is usually set to FALSE by default which means that if in a given year the lifetime allowance test is being performed on a combination of final salary schemes and money purchase pensions, the test on the money purchase will be performed first. Switching this setting to TRUE allows you to assume the opposite so that the final salary tests are performed first.

Grow items by stage defaults:

This is usually set to FALSE by default. However, a firm might advise their client to use a more aggressive investment strategy before retiring and then later rebalance this portfolio after retirement to hedge against risk. They could use the option in the software's Preferences to "Grow [all] items using stage defaults" to set asset allocations and/or fixed growth rates for accounts based on the stages in the plan's timeline.

Note: It is important to understand that when this preference is ticked, stage-specific growth settings will override any growth settings edited at the individual account level.

Using stage-based growth settings is an all-or-nothing option. The "Grow [all] items using stage defaults" preference must be ticked in Plan Preferences if you intend to use this timeline-based feature.

Assume predeceased upon simultaneous death:

This is usually set to FALSE by default. When calculating joint mortality, Voyant will normally assume simultaneous death and that the estate of the eldest client passes to the estate of the younger, inclusive of the Nil Rate Band transfer, before being taxed and then distributed. This assumption is made provided that alternative estate distribution arrangements have not been entered on the Estate Plans screen.

A special setting is available, however, for cases where clients have a predeceased clause in their wills or if they live in a jurisdiction where this is assumed. If set to TRUE the software will apply this to all cases within your white label.

Show Basic Expense Line:

The optional basic need line (in light blue) identifies the portion of the inflows in your cash flow chart that are being used to cover only basic expenses, taxes, and insurance premiums. The basic need line is exclusive of leisure, luxury, milestone and legacy expenses as well as contributions to pensions, savings and investments. The basics line is intended to show how well your client’s basic needs are will be met, especially in retirement. If set to TRUE the software will show this line. If set to FALSE the software will not show this line.

For more information on the White Label Services see our White Label Guide