Blair and Jennifer
Blair and Jennifer have come in for a portfolio review. Although positive, they have expressed concerns over their retirement income potential. With minimal assets and no pension, Blair and Jennifer are concerned they won’t be able to retire at Blair’s age 60.
The Retirement Readiness Report will help you demonstrate a need for planning, without the need for a formal planning engagement. With this report you can demonstrate a client’s ability to fund retirement goals and move the clients into a larger planning discussion when needed.
As we can see from the attached analysis, although Blair and Jennifer fall short of meeting their retirement needs, they do have options available. Based on the discussions with the clients, a formal planning engagement can be initiated, and further analysis can be completed.
Report Summary and Focus
Retirement Readiness Number
The Retirement Readiness Number indicates that although the Blair and Jennifer have a retirement income goal of $54,000, they can only expect to afford $45,900. This result is based on the assumptions entered and assumes the clients do not make any changes.
Blair and Jennifer have a lack of liquid assets. Although they are projected to have $740,000 of income producing assets at retirement, they require $1,080,000. A reduction in lifestyle would be required in order to retire on the expected $740,000.
The shortfall projected for Blair and Jennifer does not mean that they will not be able to retire. There are options available to help them overcome the shortfall and achieve their retirement goals; retire later, save more, or increase return. Should the clients wish to proceed, a more formal planning engagement can be entered and additional information gathered.