Some clients will receive income while in retirement from sources such as a rental property or an annuity. Any pre-retirement income expected should be entered in Step 1 / Other. This area allows you to include this additional cash flow into the retirement stage of the analysis. The income entered will be used to offset the client’s income needs throughout retirement. Any excess income will automatically be saved in the Client or Spouse/Partner’s Non-Registered Investments.
Monthly Income: Enter the expected monthly income. The taxable portion of this income is controlled through the ‘Percent Taxable’ field.
Index (% inflation): If you expect this income to increase, enter this increase as a percent of inflation. For example, if inflation is entered at 3% and you enter 50% in this field, the software will assume an increase of 1.5% per year.
Percent Taxable: This field allows you to specify the taxable portion of this income source. In most cases 100% of income received would be subject to taxation. However, as alternative scenarios arise you will be able to adjust this amount and reduce the portion of the income that is considered taxable.
Start At: Select ‘Retirement’ from the drop-down to have the income begin at retirement, or select ‘Age’ to establish a specific age.
End At Age: Enter the age to which you anticipate this income will continue as a numeric value. The stream of income will stop at that time.
Survivor (%): Like a pension, some of this income may pass on to a surviving spouse should one of the clients die. Enter the survivor portion as a percent of the total income. The software requires this information to properly calculate a client’s Human Capital value.
*In some cases, it is possible that clients could have other periodic or one-time income in retirement. In this situation, it is recommended you enter the additional income through the Other Retirement Income Drill-Down 
.
Need more help with this?
Contact Razor Support