Retirement

Lists all the money transactions that model the client’s retirement calculations.

Tip

Click on a transaction to edit it.

Danger

Clicking outside the form closes the form and loses your changes. Always remember to Save.

Form fields

Title

Identify what that Transaction refers to. E.g “Rental Home.”

Type

• Income During Retirement – Money added to the account that generates a positive contribution to the Retirement shortfall calculation.
• Retirement Budget – Generates a negative contribution to the Retirement shortfall calculation. Enter a single Value (dollar amount per year).
• Retirement Budget - Itemised – Build a yearly retirement budget from categories and expense line items (Cost + Frequency). The form shows Budget Categories with an Annual Total; the total is used in the same way as a single Retirement Budget value. See Retirement Budget - Itemised (budget tool) below.

Category

Categories are used to group together similar Transactions.

• Each Category will generate a column on the relevant Table (Contributions, Withdrawals etc).
• Such column will display the sum of all transactions with the same Category for that Transaction Type.

You can add as many Categories as you deem necessary for each specific client.

Categories are client-specific, except for the built-in ones (see below).

There are some built-in categories with specific ends:

• KiwiSaver - Use it to add voluntary KiwiSaver contributions.
• NZ Super - Use it to add NZ Super income. Important: Transactions using this Category are unrelated to the NZ Super automatic calculations. You should either disable the automation or be careful to avoid double counting.
• Other - Use it to bundle random transactions that aren’t worth of separate columns.

Value

The dollar amount.

Age

For couples, the age values chosen here are relative to the main client.

Age From

Defines when the transaction starts. Can’t be lower than the main client’s age when either partner retires first. (For couples, Partner Age From may be shown when the category is partner-related.)

E.g. Main client aged 50 retires at 65, partner aged 55 also retires at 65. The minimum value for Age From is then 60¹, which is the main client’s age when the partner retires.

Age To (excluding)

Defines when the transaction ends. For recurring transactions only.

Recurring

If the entry spans more than one year, use Every to set the interval.

Inflation Adjusted

If the entry is recurring, and/or in the future, applies inflation adjustment to the values in the future.

The inflation rate applied is the client’s inflation rate.

Retirement Budget - Itemised (budget tool)

When you select Retirement Budget - Itemised as the transaction type, the form shows a Budget Categories section with an Annual Total at the top. Use this to build a detailed yearly retirement budget from categories and expense line items instead of a single value.

• Budget Categories and Annual Total: The section lists categories in expandable accordions. The Annual Total at the top is the sum of all categories for the year. Expand a category to see and edit its expense line items.
• Per expense: For each expense line you enter Cost (dollar amount) and Frequency (e.g. Weekly, Monthly, Quarterly, Annually). The form converts each to a yearly amount and shows a per-expense total per year; each category shows a total per year, and Annual Total is the sum of all categories.
• Categories in the form: Accommodation, Entertainment, Food, General Spending, Gifts and Donations, Health, Personal Expenses, Subscriptions, Transport, Other.
• Frequencies: Annually, Daily, Fortnightly, Monthly, Quarterly, Weekly.

The calculated annual total is used as the retirement budget value in the Tables and Cashflow views (same as one Retirement Budget entry). You can combine itemised entries with single Retirement Budget entries; all contribute to the Retirement Budget total in the tables.

Footnotes

1. Approximately. The actual age depends on the exact birthdays and start date. For more details, see Concepts - Years and Ages ↩