Set your planning assumptions
Set your age, inflation, expected returns, currency and withdrawal rate, the numbers every Finsplore projection is built on.
Finsplore's planning tools, such as FIRE and Plan, look ahead using a set of assumptions: your age, how fast prices rise, what your investments might earn, and how much you would draw in retirement. Planning assumptions is where you see and change those numbers. Change one and every projection updates.
Finsplore starts you with sensible defaults, so you only need to change what does not fit you.
Open your planning assumptions
Planning assumptions opens from the planning pages. For example, on FIRE, click Add your date of birth when Finsplore asks for it.
Changes save as you make them. The page shows All changes saved when they are in.
You
- Birth date: Finsplore works out your age from it each time, so it is always current. If you would rather not give your birth date, enter your age in Or your age today instead.
- Target FIRE age: the age you would like to be financially independent by. It starts at 45.
- Life expectancy: how long your plan needs to last. It starts at 92.
- Dependants: how many people rely on you financially.
Age used in your plan shows the age Finsplore is using.
Inflation
How fast prices are expected to rise each year, for each country, such as 2.5% for Australia. To change a rate, click Edit next to the country, enter the new rate and click Save.
Expected returns
What each kind of investment is expected to earn each year, before inflation, such as Australian shares, Cash, Super or Term deposit. Each row shows the currency it is quoted in. To change a rate, click Edit next to it.
Currency
- Presentation currency: the currency projections are shown in, such as AUD.
- FX policy: choose Market rate on the day to use current exchange rates, or Rates I pin to set your own.
Withdrawal rate
The share of your investments you plan to draw each year in retirement. It starts at 3.5%, which is below the highest rate that has lasted every 30-year retirement in Australian market history. You can change it, but it is a rule of thumb for planning, not a guarantee.
Projections built on these assumptions are estimates, not financial advice.
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