Cashflow modelling

It’s common to be worried about maintaining your lifestyle in retirement. You don’t want to compromise on your goals, but you may be concerned about how long your money will last with inflation and the rising cost of living.

It’s difficult to tell exactly what the future may hold, but with the right guidance and tools in place you can map out your ideal retirement and the steps needed to get there.

In this blog we explore the ways in which a financial planner can help to take a holistic view of your goals and utilise cashflow modelling tools to help you maintain your ideal lifestyle in retirement.

Define your retirement goals with cashflow modelling

Retirement should be a time spent doing what you love, whether that’s spending more time with your family and friends, travelling the world, working on a new hobby or small business. Planning your retirement accurately requires you to be honest with yourself about what lifestyle you are hoping to live.

A financial planner can work closely with you to understand your goals and help to define what your ideal retirement lifestyle is. Your planner can then start to map out a long-term financial plan that fits with your current and future needs to assess with greater accuracy how much you need to retire.

Preparing for change

A financial planner can also help you to evaluate your present lifestyle and recommend actions you can implement now to get you to where you want to be in the future. For example, this could mean increasing your pension contributions each month or growing your emergency fund.

Having regular check-ins with your financial planner is essential to ensure your retirement plan is still relevant to your current vision. Here you can assess whether your needs and circumstances have changed and adjust your plan accordingly. Financial planning is all about the ability to adapt and revise. A financial planner is required to be flexible to provide a realistic and bespoke service.

How can cashflow modelling help?

Cashflow modelling is a vital part of financial planning. It can help your planner to create a timeline for your financial needs and map out what is needed to maintain your desired lifestyle in retirement.

By analysing your past, current and expected cashflow patterns, alongside new technology, a financial planner can remove some of the guesswork and create a map of your financial future.

Cashflow modelling can not only provide you with a plan for a healthy, happy retirement, but capture the changes and opportunities that arise at any point in life along the way. This can include expensive family milestones, to saving for any unexpected health problems.

Go with the cashflow

The biggest step to feeling secure about your retirement pot is planning ahead. A financial planner can use a cashflow modelling tool to support your planning journey and understand what you expect from your retirement years.

If you’re ready to begin these steps, you can speak to our team of experienced financial planners about designing your own personal cashflow model around your goals and aspirations.

The information contained within this document is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
The opinions stated in this document are those of the author and do not necessarily represent the view of Progeny and should not be relied upon to make a financial decision.
If you are unsure about the suitability of otherwise of any product or service, we recommend that you seek professional advice.

This article is distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily the Firm and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.

Past performance is not indicative of future results and the value of investments can fall as well as rise. No representation is made that the stated results will be replicated.

Joshua Castle

Chartered Financial Planner

Josh joined Progeny in June 2017 as a Paraplanner.

Learn more about Joshua Castle