Retirement Spending Insight Transcript
Hello, and thank you for joining us for today’s AdviserGo training.
Today, we’re going to review the Retirement Spending Insight and walk through how it can help determine how much more a client may be able to spend in retirement.
In this example, the client currently has a retirement spending goal of $60,000 per year. However, we can see that they have substantial wealth in the plan, so we want to explore whether they may be able to spend more throughout retirement.
To do this, we’ll go to the Insights tab and search for Retirement Spending Insight. Once we find it, we’ll select the insight to begin.
For this example, I’m going to use Mark’s retirement age of 65. If needed, you can adjust the retirement age or select the other party in the plan, depending on the scenario you want to model.
Once those selections are made, we’ll go ahead and click Start.
Now we can see that the insight has calculated a retirement spending capacity of nearly $149,000 per year. Compared to the client’s current retirement goal of $60,000, this suggests they may have room to increase their annual retirement spending.
From here, we can compare the insight results against the original plan.
Starting at age 65, we can see that the client’s Basic Needs and Total Needs have changed to reflect the additional retirement spending. In the comparison view, the base plan is shown on the bottom, while the insight results are shown on the top.
The Cash Flow chart helps show how those increased retirement expenses are flowing through the plan.
We can also move to the Assets chart to see how the client’s assets are being drawn down to support that additional spending. This is a helpful area to review with your client because it shows how their retirement expenses may be funded over time and how their assets are projected to decline as those needs are met.
The Retirement Spending Insight is a helpful guide for understanding the maximum amount a client may be able to spend sustainably throughout retirement. It provides a strong starting point, but the results should still be reviewed alongside the client’s full plan, including their goals, expenses, asset structure, and overall planning priorities.
You also have the option to create this into a What-If Plan if you would like to continue analyzing or adjusting the scenario.
If you have any questions, please feel free to reach out to Support, and we’ll be happy to assist.
Thanks for watching.