Clarity to plan for your future

You may have accumulated wealth through a combination of sources such as investment property, cash ISAs and other investments but you aren’t sure collectively how much they can provide in the future. Cash Flow forecasting can incorporate all of your capital assets and expected income such as the state pension and annuities, giving you a holistic picture of your financial position in retirement.

Knowing this information will help you to assess what standard of living you can expect to maintain. This can also help identify any shortfalls so that you can plan how to address these now.

This is one of the most common queries we receive. Typically, people in early-mid retirement spend more, as they may travel, move home, take up new hobbies or even return to education. Things that they did not have time to do before retirement. Retirement Cash Flow Planning was designed with this question in mind, taking into account all of your assets, income and using sensible assumptions about future variables we can help you establish what level of income can be generated to ensure that you can enjoy life now but still take care of ‘future you’.

An understandable concern, the withdrawals you make in drawdown when taken during periods of negative performance such as we have seen in 2020 and 2022 can cause a snowball effect known as ‘pound cost ravaging’ leading to further erosion of your capital.

Our cash flow software uses historic data ranging from 1992-2022 to provide an indication of how long-term variable stock-market returns for a given risk profile impact your pension sustainability. When combined with your current and expected future income withdrawals, we can establish whether you can withstand this typical investment pathway without running out of money. The knowledge you gain from this may inform your decisions around your investment strategy such as whether to alter the level of risk within your investments, adjust your income, or consider alternative methods of funding your retirement’. The forecast may even indicate that there is room in the budget to spend a little more!

Perhaps you would like to retire before the state pension age and are wondering if you have enough savings/assets/income to do so. Considering your assets, sources of income and using sensible assumptions about future variables, our software can clearly illustrate whether your retirement assets can sustainably facilitate this and if not, model viable alternatives.

The ongoing crisis in Ukraine and post-pandemic global supply shortages showed us all how quickly inflation can change from benign and predictable to corrosive to our standard of living, particularly for those living on a fixed income. If you want to establish whether your pension and savings could sustain inflation linked withdrawals, then this service is for you. The planning can also accommodate for the unexpected, such as an unexpected capital expense such or a prolonged period of high inflation.

For many clients, the outstanding mortgage is a barrier to early retirement, and you may be considering using your pension tax free cash to pay off your mortgage. Whilst this service does not provide you with advice on the suitability of this action, it can model the financial implications of doing so, which can help you to make an informed decision. Where we feel that advice is needed, we will discuss advised services with you.