Working in Retirement

Your clients may plan on transitioning into retirement by continuing to work for a number of years at a reduced capacity or by engaging in something else they enjoy. This area allows you to include this additional cash flow into 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 taxable income in today’s dollars. The software will automatically calculate the annual income expected based on the monthly income entered.

Annual Income: Enter the expected annual taxable income. The software will automatically calculate the monthly income expected based on the annual income entered..

Take Home / Month: Enter the take home pay (i.e. after tax amount) of the clients per month. This amount should not exceed the amount entered for monthly income above. If Take Home / Month is entered as zero, the program will estimate withholding taxes based on the clients’ average tax rate for the year. When cash flow planning, best results are achieved when an amount is entered in this field.

Self Employed: Select if the clients are self-employed for tax purposes. Selecting Yes here indicates that the person is responsible for both the employee and employer portions of CPP payments.

*Take Home / Month and Self Employed fields are displayed only when the Pre-Retirement Cash Flow field on the Assumption in Your Account is set to On.

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.

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.

*In some cases, it is possible that clients could have multiple sources of employment income in retirement. In this situation, it is recommended you enter the additional employment income through the Employment Income Drill-Down .