The Retirement Readiness is a report that can be run on plans in Deficit status. The Readiness report is designed to illustrate the significance of a funding shortfall in a plan that is underfunded. Read on to learn about the different sections of the report.
Branded cover page
The logo and titling you provided upon sign up will appear on the cover page, with the status of the plan and the client name(s).
Introduction to Time Segmentation
The pages helps facilitate a conversation with your client about the aspects and potential benefits of time-segmented income distribution.
Pre-Retirement Warm Up (optional)
When a plan is slated to start more than a year from today, the Plan Editor will make a basic calculator available under the investment field in the Solve Settings tab. This calculator helps estimate a future asset level based on a current asset level and contributions and growth.
If you use this calculator, the Pre-Retirement Warm Up page will appear in reports for the plan.
Income Plan Summary
This module provides a summary of the retirement goals as provided by your client, when the plans starts, how long it lasts, assumed retirement date(s) and associated age(s) which have been used to generate the income plan analysis.
During periods in which there are insufficient funds to meet income needs, the deficit will show on the Annual Cash Flow chart in red. The Deficit/Surplus highlight figure also shows as negative.
Implementation Plan Summary
This report provides a summary of the segment structure of the income plan, including the amount of assets required to allocate to each segment to fund them, the duration over which they are designed to provide income, and the projected income levels at the start of each segment.
Portions of segments or entire segments will show in red depending on the size of the funding deficit. Segments are always funded chronologically across income segments, and then outside/legacy segments.
Hypothetical Illustration
This illustration shows a consolidated view of all plan information.
- Plan calendar years with projected client ages at year-end
- Segment assumptions including Net Rate of Return, Distribution ROR, Assumed Tax Rate, Proposed Investment Amount, and Allocation %
- Net-of-taxes monthly income total by year, as well as total annual Other Income (gross of taxes), and total annual Withdrawals (gross of taxes)
- Projected segment balances at year-end for each plan year, with distribution years highlighted in green. Distribution periods in which segment assets are depleted or unavailable due to a plan deficit appear shaded in red.
- Total projected plan balance by year. Balances will go negative in periods of deficit.
Other Income Detail
If Income Floors are incorporated into the plan, details on the cash flow generated by each is shown here with Key Highlight summary figures. A chart and tabular version of the data is provided. All figures on these pages are gross, or pre-tax. If no floors are specified, these pages will not appear in the report.
Expense Detail
If inflation for the plan is set to Expense-Level, all expenses will be shown with Key Highlight summary figures. A chart and tabular version of the data is provided. If either Plan-Level or Segment-Level inflation is used, these pages will not appear in the report.
Social Security Detail
This module only appears in reports if you subscribed to Health+ and are using the included Social Security projection tool.
This report illustrates the household’s projected Social Security benefits based on the claiming strategy that was selected. The annual benefit projections illustrated are based on the following assumptions: client date of birth, projected longevity, Primary Insurance Amount (PIA) or current benefit a client has already claimed, and projected annual Cost of Living Adjustments (COLAs). The benefit figures shown below do not reflect any projected withholdings or deductions for Medicare premiums and IRMAA surcharges.
Healthcare Detail
This module only appears in reports if you subscribed to Health+ and are using the included Healthcare cost projection tool.
This report provides a detailed view of projected monthly Medicare premiums, projected monthly commercial premiums prior to enrolling in Medicare, and projected
monthly Out of Pocket Expenses (optional) based on illustrated coverage and projected client longevity.
If the plan length is based on a calculated projected longevity value (vs. manually input), expenses may vary based on the clients’ identified health condition(s), gender, retirement state, and projected year of death.
Options to Eliminate a Shortfall
Outlines some of the options available for addressing a funding shortfall to help drive conversations with the client about next steps for the plan design.
Disclosures and Disclaimers
The final pages of the Proposal include the disclosure provided to us when you subscribed, standard disclosures for WealthConductor LLC, as well as disclosures specific to the illustrations that appear in this report depending on the features utilized in the plan, such as expenses or income floors.
