6 - How to Increase Lifestyle Expenditure in Retirement
Some clients may specify the level of income they wish to receive in retirement (to allow for additional holidays / retirement lifestyle choices). To incorporate this change to expenditure in the Recycle My Debt modelling option:
1. Click on the EXPENSES tab (from the left-hand menu)
2. Click on the LIFESTYLE EXPENSES entry (as indicated by the arrow in the below screenshot).
Clicking on this entry will open the EXPENSE DETAILS screen.
3. Change the MODEL END date to the year before the last date showing in the drop-down menu.
In this case, FY 2045 is the last real year, prior to Model End, so you should select FY 2044 (financial year 2044) as the last year for Lifestyle Expenditure, and your Retirement Lifestyle Expenditure will start in FY2045.
Click UPDATE to save the change.
You now need to create the new Retirement Lifestyle Expense.
4. Click on the CREATE NEW EXPENSE button.
The ADD EXPENSE detail screen will open.
5. Add in the Retirement Lifestyle Expenses (as shown above).
6. Select the DATE START.
This date should be the year after the Lifestyle Expense was turned off (or the last financial year from the drop-down menu).
In this case, the Start Date for the Retirement Lifestyle Expenses will be FY2045.
The Lifestyle Expenses were turned off in FY2044.
7. Set the DATE END. This will be Model End.
8. Add the Annual Amount of the client's desired Retirement Lifestyle Expenditure.
9. Select the Funding Account from the drop-down menu. This should always be the SURPLUS ACCOUNT.
10. Click UPDATE to save.
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