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Retirement Modelling

An overview of how to model retirement in Canwi

Cameron Drury avatar
Written by Cameron Drury
Updated over a week ago

Overview

Step 1: Make sure your plan runs until the age you want your income to last - for example, your longevity age. You can do this from the "Scenario Settings"

Step 2: Add your Retirement event (and your partner’s, if you have one).

Note that you can configure the Superannuation Drawdown per "how does the retire event work".

In this example we'll assume we want to achieve an income of ~110k per year in retirement so we've set;

'Helly's Retirement' to a 40k pa retirement income.

Note that from the retirement income drawdown chart on the right Helly's superannuation is completely drawndown by age 76

and 'Mark's Retirement' to a 70k pa retirement income.

Note that from the retirement income drawdown chart on the right Mark's superannuation is completely drawndown by age 82

If you're retiring before preservation age (e.g. 60) where you can access your superannuation and don't have significant passive income its likely that you'll have a cashflow deficit.

Step 3: To drawdown on other assets (e.g. Shares) add a Sell Shares event to your plan.

In this example we've added "Sell Shares" to the same year as retirement to help cover a 5 year gap in Retirement income.

Note that we also have cash reserves at this point in the plan which will automatically be used to cover cashflow deficits.

Step 4: Use the "Overview" screen to zoom out and understand your entire plan.

Here we can see that the blue Superannuation asset category is drawndown fully a few years before the end of the plan with cash reserves being fully drawn down by the end of the plan

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