By Jim Hennington, Senior Actuary
There are over 90 items that Jubilacion’s retirement projection software takes into account. These are set out below.
All these are needed to make informed decisions about your Big Retirement Decisions like how much you need to retire and what lifestyle you can safely enjoy when you do. Many of them impact your projected cashflows from the Age Pension too – when your wealth level lands within the means testing ranges.
But don’t worry, we guide you through the process and made it easy and intuitive to gather the right info and interpret your results. We’ve become experts in explaining what we do in an intuitive way. We get incredibly good reviews.
FACTORS ABOUT THE CLIENT
- Age of person one
- Age of spouse
- Health of person one
- Health of spouse
- Value of their home
- Details of their mortgage
- Cash
- Super balance of person one
- Type of super fund for person one
- Investment mix of person one before retirement
- Investment mix of person one in retirement
- Insurance cover of person one
- Super balance of spouse
- Type of super fund for spouse
- Investment mix of spouse
- Investment mix of spouse in retirement
- Insurance cover of spouse
- Shares
- Please contact us for the complete list….
CLIENT DECISIONS
- Retirement age of person one
- Retirement age of spouse
- Super contributions per annum of person one
- Super contributions per annum of spouse
- Extra savings per annum by person one
- Extra savings per annum by spouse
- Part time work plans for person one
- Part time work plans for spouse
- Minimum bequest to kids
- Please contact us for the complete list…
KEY ASSUMPTIONS
- Asset class returns and risk characteristics
- Market metrics over time: inflation, interest rates, yield curves, P/E ratios, GDP growth
- Life expectancy for person and probability of reaching each age
- Life expectancy for spouse and probability of reaching each age
- Joint-life expectancy (based on at least one person being alive) and probabilities
- Please contact us for the complete list…
KEY METRICS
- Amount you can safely spend each year with a high degree of confidence it won’t run out
- Additional amount you can spend if markets perform well
- Probability of not outliving your savings (under different decision sets)
- Range of what your projected superannuation balance will be over time (year-by-year)
- Range of what your total net worth will be over time (year-by-year)
- Range of what your net worth will be on death
- Please contact us for the complete list…
DECISIONS AND WHAT IF ANALYSIS
(common examples – any of the customer inputs can be tested)
- Different retirement dates
- Save more before retirement
- Spend less in retirement
- Changes to part time work plans
- Please contact us for the complete list of decisions people wish to explore
Don’t worry – not all of this will apply to you. Jubilacion make it easy to identify what matters to each person. We would love to hear from you about what matters most to you. We genuinely love hearing about people’s retirement stories and discussing how modelling helps to make confident, fully informed decision that deal with the unknowns. You can call us on (03) 6240 1575, fill out our contact form on our website www.jubilacion.com.au or email us at enquiries@jubilacion.com.au.
Actuary Jim Hennington has been working in retirement planning and financial software for 20 years. He’s an active member of the Institute’s Retirement Incomes Working Group and has been involved in their submissions on Regulating Digital Product Advice, the Retirement Income Covenant, the Retirement Incomes Review, Quality of Advice Review and Innovative Retirement Income Stream (IRIS) Legislative Considerations. He was actively involved in producing the Institute’s guidance notes on Good Practice Principles for Retirement Modelling and Innovative Income Streams.
Jim co-authored the papers ‘10 Good Practice Principles for Retirement Modelling’ in 2016, a paper ‘We asked how 2,500 planners formulate retirement income advice’ in 2018 and ‘A Framework for Maximising Retirement Income’ in 2021.
