New Feature: Capacity For Loss

To bring our new Capacity For Loss feature to fruition, we have used extensive research from the Pensions and Life Savings Association to categorise lifestyle spending into essential, comfortable and luxurious.

Please note that these categories vary depending on whether the spending refers to a single person or a couple. You can find out more about that here.

Here is an example of what it looks like on the Snapshot page:

This shows the client’s sustainable income in the worst historical scenario. You can find this same scenario by finding the red line on the Sustainable Withdrawal chart.

We categorise a client’s Capacity For Loss based on what their lifestyle would look like in the worst case scenario. We have defined lifestyle based on the Pension And Lifetime Savings’ research into retirement income.

We have three levels of Capacity For Loss

  • Low - Less than 75% of comfortable spending covered in the worst case scenario
  • Medium - 75%-90% of comfortable spending covered in the worst case scenario
  • High - More than 90% of comfortable spending covered in the worst case scenario

Our users can use this in their reports quickly and easily.

Come and take a closer look. Start your 30-day Free Trial here.

Kate is Business Development Manager at Timeline.

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