Cashflow modelling projects your income, spending, pensions, property and debts forward one year at a time to age 100, with UK tax applied, to show whether your money lasts. We build one for every Financial Plan, at £1,500. For the years after you stop work, see retirement cash flow modelling.
Each year the projection pays your spending, adds your earnings, applies growth to your investments, takes off tax, and carries the balance into the next year. Run to age 100, it shows when you can stop work, whether the money lasts, and the age it runs out if it does not.
Ours applies income tax including the Scottish bands, National Insurance, dividend tax, capital gains tax, the pension annual allowance and lump sum allowance, and inheritance tax on the estate. A tax error repeated across seventy years carries into every later figure.
A single projection assumes investments grow at a steady average each year. Markets move unevenly, and the order of good and bad years changes the result: poor returns in the first three years after you stop work do more damage than the same returns ten years later, even with the same average.
We run your plan two thousand more times with the years in a different order each time, and count the runs in which your money lasts.
That count measures how much the plan depends on the order of returns. It is not a forecast or a probability of real events.
Each stress test is reported as the number of years it moves the age your money runs out. The tests include markets falling by a third in the first three years, redundancy at 58, four years of care, and one partner living to 97.
It shows what follows from a set of assumptions. Change an assumption and the result changes, which is why every assumption is printed.
A projection shows the size of a gap. Choosing a product to fill it is regulated advice; where one is needed we can introduce you to Equity & General (FCA 474163).
When to stop, whether to help a child, whether to sell: the projection shows what each option costs, and you decide.
The plan starts from your bank data so the spending figure is recorded, not estimated.
The Healthcheck reads it from your bank transactions in about two minutes.
Current values of pensions, savings, investments and property, and what is owed on each. Include old workplace schemes.
Your State Pension forecast from gov.uk, and figures from any defined benefit scheme, including what it pays if taken early.
A date, a monthly figure and anything you will not give up.
Two to three weeks. Your part is the two-minute Healthcheck, about an hour on your goals, and ninety minutes going through the result. Pension providers can take several weeks to send current values, so request them early if you have several pensions.
Cash flow modelling is a projection of your money one year at a time. Each year it pays your spending, adds your earnings and pensions, applies growth to your savings and investments, takes off tax, and carries the balance into the next year. Run to age 100, it shows when you can stop work, whether your money lasts, and the age it runs out if it does not. Ours applies UK tax in every year, runs the plan two thousand more times with the years in a different order, and tests specific events such as care costs and redundancy.
No. Cash flow modelling is financial planning, and financial planning is not regulated financial advice. It shows what follows from your figures and from each choice, such as stopping at 60 or at 63. Regulated advice is a personal recommendation on a product, such as which pension or fund to use, and Buzz Accounting Ltd is not authorised to give it. Where a decision needs a recommendation, we say so and can introduce you to Equity & General (FCA 474163). The introduction is optional, and we tell you about E&G’s commission to Buzz before it.
Our cash flow model is part of the Financial Plan, which costs £1,500, paid once, for one person or a couple. That covers the fact find, the projection to age 100 with UK tax applied, the two thousand reshuffled runs, the stress tests, the results session and the written plan. Re-running it each year is ongoing planning at £49 a month, which is optional. The free projection gives a rough answer in about two minutes without tax. How much a financial plan costs sets our prices beside published UK advice fees.
Yes. The free projection runs a simple version in your browser: eight figures, one growth rate, in today’s money. It applies no tax and cannot show the effect of poor returns early in retirement, so its answer looks better than a full model would. Retirement cash flow modelling shows a full projection worked through by age for an example couple, including what each stress test costs them in years.
An hour with a planner on whether the Financial Plan suits your position.
A written plan: every year to age 100 with UK tax applied, each risk measured in years, and your next ninety days.