I have been trying to model a scenario that includes a decreasing amount of salary after a specific age. Example: the client reduces hours/salary by 50% from ages 65 to 70. Can I enter inputs to reflect those assumptions?
This is a great question, one we’ve been hearing about more and more over the past year. Seems like part-time retirement is becoming more common.
The plan models a traditional retirement straight out of the box but the gradual retirement can be modeled easily:
- Set the client profile up with their current salary and a Retirement Age of 65. This will cause their current salary to stop altogether at 65.
- Set up a source of income under “Retirement Income.” You can use a type of “Other” and name it “Part-time Income” or something appropriate. The key here is to set the start date of the income to Age 65 and the end date to Age 70. The amount should be what he expects to receive annually in partial retirement.
- For the plan's other income sources and assets, keep in mind that their Income Start Dates are, by default, at Retirement. Since we’re setting that to 65, you may want to tweak their start dates as appropriate (i.e. Social Security starting at age 70.)
I think that will achieve what you’re looking for. If you’d like to talk through it, just give us a call at 800-935-6880 or book some time with a coach at https://calendly.com/retireup.