What Is the Retirement Year?
The Retirement Year is determined as the latest retirement age between the client and the co-client. For example:
For example, if the client retires at age 60 (in 2030) and the co-client retires at age 65 (in 2035), the Retirement Year is 2035.
This Retirement Year is used as the starting point for post-retirement assumptions, including post-retirement spending and any relevant toggles.
How Income and Retirement Ages Interact
While the Retirement Year is based on the latest retirement age, income streams tied to each individual’s Retirement Age will automatically end at their respective retirement dates:
For instance, if the client retires at age 60 (2030), their salary will stop in 2030, even if the co-client continues working until 2035.
Any toggles or assumptions related to income (e.g., salary reduction, bonuses, or other employment income) will apply up to the individual's Retirement Age and then cease.
Example
If a toggle reduces the client's salary by 25% from age 55 (2029) to "Retirement," and their Retirement Age is 60 (2034), the reduction will be applied from 2029 to 2034.
In income charts focused on the client, you will see this reduction reflected accurately. However, in the Cash Flow Summary Chart—which combines both client and co-client income—the reduction may be less visually distinct due to the aggregation of both incomes.
How the Retirement Goal Is Calculated
The Retirement Goal uses the Retirement Year to define when the retirement phase begins from a household planning perspective. Even though the client and co-client may retire in different years, Planworth considers the later of the two to ensure sufficient income is available to cover household expenses.
Spending needs identified as “post-retirement” begin in the Retirement Year (latest age).
This ensures both clients’ financial needs are considered and that any shared expenses are accounted for appropriately.
Additional Insights and Reporting
Use the Insights feature for further analysis, such as determining the maximum sustainable spending or the earliest possible retirement age.
Results and projections can be included in client reports using the Report Wizard by selecting the "Retirement Goal" page.
Summary:
The Retirement Year is always set to the latest retirement age among the client and co-client, ensuring that retirement planning and post-retirement spending projections are comprehensive. Income streams for each person end at their respective retirement ages, and toggles or reductions are reflected in individual income charts. For a consolidated view, refer to the Cash Flow Summary Chart, keeping in mind it aggregates both client and co-client incomes.