Jackie signed up to RetireEasy as she was planning to fulfil her dream of a six month luxury worldwide cruise when she retired at her new State Pension Age of 63. Jackie has saved hard during her working life and had earmarked her personal pension lump sum to pay for the £20,000 cruise and wanted to know how this would affect her finances in retirement.
In this case study we show how the cruise affected Jackie’s finances and how a potential shortfall was avoided.
Retirement age: 63
Desired Income: £20,000, increasing in line with inflation
Inflation – 2.5%
General Growth of Assets – 3%
General Yield on Assets – 3%
Home Value: £350,000 – Growing at 0%
Mortgage: No mortgage
Private pension: Value today £100,000
Growing at 6%
Start age - 63
25% tax free lump sum taken
5% pa drawdown
Final salary pension: £5,000 pa from age 60
State Pension: £8,000 pa from age 66
ISA: Value today £30,000
Growth and Yield as per General Assumptions
Bank Balance: Value today £15,000
Jackie had a number of choices. She could reluctantly reduce the budget for her cruise but with the aid of her LifePlan she readily saw that by making a modest reduction in her inflated desired income at 73, the shortfall was deferred until her mid 90s. Jackie started making plans for her cruise comforted by the visualisation of her future finances that LifePlan brings.
Your future may be a lot brighter than you think.
RetireEasy enables you to live the lifestyle you choose.
RetireEasy is the UK’s only independent retirement planning tool. LifePlan gives you an overview of all of your assets – including investments, pensions, savings, business assets and properties – and the income you will receive after liabilities such as debts, mortgages and income tax. It is not just a snapshot, but shows you how your finances will evolve throughout your retirement.
Premium LifePlan not only provides live updates on stocks and fund values, provided by Morningstar, and you can model a Lifetime Mortgage, create and compare up to 3 scenarios of your financial future, radically reduce life insurance costs through a Life Assurance Premium Checker and you can print user-friendly narrative reports.
RetireEasy was established in 2011 and has helped thousands of users to understand their finances throughout retirement and adjust their plans to ensure that their money will last.
You can now include all your additional savings, investments and Pension Contributions between now and your retirement, taking into account increasing these Additional Contributions year-on-year and stipulating whether these are one-off or recurring contributions. As always, you can revisit these projections and change them at any time either when your expectations change, or you have real numbers to replace projections already made.
There are now three additional charts, further breaking down your assets and income.
You can now also download spreadsheets giving you the opportunity to view all of your entered information, and your entire LifePlan in one glance.Sign up now