Case studies
Using the example profiles below we will guide you through using RetireEasy LifePlan.
1 Background 2 Charts 3 Solution Back to case studies
Background: Adam Smith
Adam has recently signed up to RetireEasy and has discovered a problem looming which he must resolve in order to be able to relax and not worry about his finances in retirement.
Here we take you through his situation, the problem he is facing and the way this is portrayed in the RetireEasy LifePlan. Then we show you the options he has to resolve this, the solution he chooses and how RetireEasy illustrates that the problem has now been eliminated.
Here are the key details Adam entered into RetireEasy:
Age: 61
Retirement age: 66
Desired Income: £25,000, increasing in line with inflation
Assumptions:
Inflation – 3%
General Growth of Assets – 5%
General Yield on Assets – 3%
Home Value: £300,000 – Growing at 5%
Mortgage: £50,000
SIPP: Value today £100,000
Growing at 8%
Start age - 66
25% tax free lump sum taken
10% pa drawdown
State Pension: £8,000 pa
Start age 66
ISA: Value £10,000
Growth and Yield as per General Assumptions
Personal Investments: Fidelity Fund
Value: £100,000
Growth and Yield as per General Assumptions
Income: Part time job
Earnings: £15,000 per annum before tax
Increases: 10% per annum
Duration: From Age 66 to 70
What the LifePlan charts reveal:
The solution
Adam then had a number of choices: He could plan to downsize his home prior to age 82, enter into an Equity Release transaction, reduce his Desired Income from Retirement Age, or he could reduce his Desired Income prior to age 82.
He chose to plan to downsize his home by 30% at age 80, pay off his mortgage and re-invest the surplus funds in readily available investments that would produce growth and yield in line with his General Assumptions.
Retirement Planning made easy.
Your future may be a lot brighter than you think.
RetireEasy enables you to live the lifestyle you choose.
Retire Easy Ltd.
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.
With Premium LifePlan you can model a Lifetime Mortgage, create and compare up to 10 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.
