Chance of Beating TargetThis is an upgrade to the Investment Forecast, enabling your customers to view the probability of their investment beating a specified target.
Use the inputs below and click ‘Calculate’ to demonstrate sample results from this API:
This table shows the percentage chance of the investment beating the stated target over time:
| % |
To get immediate access to this or any other of our APIs, just sign in to our API Store and download the relevant files and documentation.
Go to the API StoreOur pricing strategy is being updated and will be available soon.
Text
Select the underlying index which best reflects your expected annual increase in contributions. This could be Retail Price Index (RPI), Consumer Price Index (CPI) or Average Weekly Earnings (AWE).
Apply an additional annual percentage increase to your contributions, on top of the increase basis.
Percentage increase adjustment to apply to your contributions annually.
Frequency of regular contribution.
Initial percentage charge applied to the user's lump sum investment.
Initial percentage charge applied to each of the user's monthly contributions.
Decide whether to reflect a level of taxation upon the contributions.
Define the percentage of future monthly contributions that are allocated to this fund.
The amount charged to the account holder annually as a percentage.
The annual percentage adjustment to apply to the fund.
The fund code for forecast. This could be a Citicode, an asset class or a risk. For simplicity, this demonstration only uses asset classes. If using a risk, then a risk term and risk group need to be provided.
The risk term is separate to the more commonly used forecast term; this enables the user to drive their asset portfolios by the individual goal rather than by the retirement date.
Specifiying a risk term separate from the forecast term can remove ambiguity when forecasting for multiple terms. It is also useful when forecasting for a shorter term than the length of investment, for example, forecasting for a term of 5 years when the investment lasts for 10 years.
Select the underlying index which best reflects your expected annual increase in withdrawals. This could be Retail Price Index (RPI), Consumer Price Index (CPI) or Average Weekly Earnings (AWE).
Apply an additional annual percentage increase to your withdrawals, on top of the increase basis.
The term at which you would like the API to output a forecast result. The API supports a maximum term of 75 years
Terms at which you would like the API to output a forecast result. The API supports a maximum term of 75 years
Decide whether to view the result with the target amount of the lump sum expressed as a gross amount (before tax) or a net amount (after tax).
Decide whether to reflect the increase in value of goods and services over time. There are several measures of inflation: Retail Price Index (RPI), Consumer Price Index (CPI) or Average Weekly Earnings (AWE).
Apply an additional annual percentage increase on top of the increase basis.
Percentile results from the model for which the user would like their results output. – eg, 50th percentile is the 500th ranked result of 1000 simulations from the model.
User's risk benchmark to which their investment can be evaluated. The default configuration has the risk groups 5, 7 and 10, which correspond to risk scales 1 - 5, 1 - 7 and 1 - 10.
Future terms from the model for which the user would like their results (income, pot value etc) output. The API supports a maximum term of 75 years
Percentile results from the model for which the user would like their results output. – eg, 50th percentile is the 500th ranked result of 1000 simulations from the model.
There is a chance that anyone might die on any day. In order to provide an accurate life expectancy for you in retirement, we assume that you won't die prior to retiring. Your retirement date is therefore required as a start date to begin calculating life expectancy.
Decide whether to view the result with the target amount of the lump sum expressed as a gross amount (before tax) or a net amount (after tax).
In addition to the tax jurisdiction, further specify tax assumptions. The model currently supports the different tax rules of UK and Scotland, but more countries could be added in future.
Decide a lump sum amount to aim for as a target.
Decide a yearly income to aim for as a target. An approximate rule of thumb for a target income in retirement is two thirds of the user's current salary
Decide whether to view the result with the target amount of the lump sum expressed as a gross amount (before tax) or a net amount (after tax).
Select the underlying index which best reflects your expected annual increase in target. This could be Retail Price Index (RPI), Consumer Price Index (CPI) or Average Weekly Earnings (AWE).
Apply an additional annual percentage increase to your target, on top of the increase basis.
It is possible to optimise towards a fund or a risk. Optimising towards a user's risk ensures that their portfolio is invested according to their risk profile. Optimising towards the same set of funds that the user already has can determine whether those funds can be reallocated to provide better returns.
Initial percentage charge applied to each of the user's contributions.
Value up to which the tiered charge percentage will apply. – eg, 2% up to £100,000.
Percentage of your overall contribution to allocate to this fund
Ongoing percentage charge applied to the specific fund.
Percentile results from the model for which the user would like the backsolve to be calculated at.
Term at which the backsolve calculations are processed.
Probability target for which the backsolve should solve.
Option to include individual simulation journey options from the model.
If requesting the individual simulation journeys, then the user must define the term at which to evaluate this.
Select the underlying index which best reflects your expected annual increase in salary. This could be Retail Price Index (RPI), Consumer Price Index (CPI) or Average Weekly Earnings (AWE).
Apply an additional annual percentage increase to your salary, on top of the increase basis.
Define the percentage of your pension pot to withdraw as a lump sum.
Select the underlying index which best reflects your required annual increase in pension. This could be Retail Price Index (RPI), Consumer Price Index (CPI) or Average Weekly Earnings (AWE).
Apply an additional annual percentage increase to your pension, on top of the increase basis.
The percentage of the annuity that the spouse can inherit on the account holder's death.
An Annuity Guarantee Period works by providing a guaranteed period over which the annuity will be paid. This is usually over 5 or 10 years, but there is no limit on the guarantee period you choose. The annuity will continue to pay over this guaranteed period if the holder dies during this initial term.
The percentage value of pot to use for annuity purchase.
Define the percentage of your pension pot to withdraw as a lump sum.
Define the percentage of your pension pot to withdraw as a lump sum.
Define the asset type in order to allow for further asset details such as pension schemes, underlying charges etc.
Percentage of the asset that the user owns.
Enter a total value for the user's current instantly accessible savings
Enter an amount of savings that are kept by for an emergency situation - e.g. unforeseen illness.
Value of any savings held in products that are term committed and the funds therefore cannot be accessed (eg 5 year fixed rate ISA.)
Enter a total value for the user's current investments
The value of any non-income assets held
Defines whether the user's debt is secured or unsecured; if it's secured, then the tool will look to pay this off as part of the affordability calculation.
Is the debt owned solely by the subject, or shared with another party?
Essential expenses cover everything that we need to attain a basic quality of life: e.g. groceries and accommodation.
Non-essential expenses cover everything that can buy surplus to a basic quality of life: e.g. luxury items, eating at restaurants.
Annual percentage charge to apply within the relevant tier
Value up to which the tiered charge percentage will apply. – eg, 2% up to £100,000.
Required target amount of the lump sum
Decide whether to target the amount of lump sum as a gross amount (before tax) or a net amount (after tax).
The annual retirement income expected from the Defined Contributions scheme
Whether the specified DB income is in today's or future prices.
Select the underlying index which best reflects your expected annual increase in DB income. This could be Retail Price Index (RPI), Consumer Price Index (CPI) or Average Weekly Earnings (AWE).
Apply an additional annual percentage increase to your DB income, on top of the increase basis.
If you have a pension through your employer, this is a “Workplace Pension”. Your pension literature or your payslip will show whether or not your pension takes advantage of “Salary Sacrifice”, or whether your contributions are made via a net pay or relief at source arrangement.
If “net pay”, you receive tax relief at the highest rate of tax that you pay, and if “Salary sacrifice”, you and your employer will make additional National Insurance savings.
If personal or “relief at source”, your pension provides you with tax relief at the basic rate; if you are a higher rate taxpayer, we assume you claim further tax relief from HMRC.
When you contribute to a pension via a salary sacrifice, your employer will benefit from savings in National Insurance, which they may choose to share with you. If they do, enter the percentage of the savings that they share with you, e.g. 100% = all of it, 50% = half of it, etc.
The percentage of your pension contributions that the employer matches. For example, if there is a 1-to-1 matching of contributions (ie 100% matching), then enter 100.
Term (months) until the user must pay off a lump sum debt.
Term (months) of essential expenses cover required in case of an emergency.
Term (months) of non-essential expenses cover required in case of an emergency.
Term (months) of additional essential expenses cover required to cover a partner in case of an emergency.
Term (months) of additional non-essential expenses cover required to cover a partner in case of an emergency.
Term (months) of additional essential expenses cover required to cover any dependants in case of an emergency.
Term (months) of additional non-essential expenses cover required to cover any dependants in case of an emergency.
Percentage of the user's investment that they can safely invest as an initial amount.
Percentage of the user's investment that they can safely invest as an ongoing amount.
Maximum loan to value percentage.
Percentage of the user's main residence net equity to consider when determining an initial investment amount.
Percentage of the user's currently held investments to consider when determining an initial investment amount.
Results in today's prices will been adjusted to allow for inflation, whilst results in future values do not take inflation into account.
Results in future values will be a higher number than results in today's prices. Generally speaking investment forecasts make more sense in future values, whist retirement forecasts are best viewed in today's prices.
Index to use for discounting purposes if todaytoday'ss prices has been selected (i.e. the inflation measure used to roll back asset values in order to display ‘real’ results). This could be RPI or CPI and does not affect any of the increases specified elsewhere,
User's risk benchmark to which their investment can be evaluated. The default configuration has the risk groups 5, 7 and 10, which correspond to risk scales 1 - 5, 1 - 7 and 1 - 10.
Life expectancy varies considerably by location, driven by factors such as diet, wealth and unemployment levels. This in turn effect the annuity quotes that providers offer.
Select the underlying index which best reflects your required annual increase in pension. This could be Retail Price Index (RPI) or NONE. This is a restricted subset of the usual set on Increase basis and excludes Consumer Price Index (CPI) and Average Weekly Earnings (AWE).
Unlike the other APIs, the Increase Base and Increase Rate are mutually exclusive.
Select the increase rate which best reflects your required annual increase in pension. This is an alternative to the increase basis.
Unlike the other APIs, the Increase Base and Increase Rate are mutually exclusive.
The percentage of the annuity that the spouse can inherit on the account holder's death.
Unlike the other APIs, this option is restricted to 50, 66 or 100%, rather than 0 - 100%.
An Annuity Guarantee Period works by providing a guaranteed period over which the annuity will be paid. This is usually over 5 or 10 years. The annuity will continue to pay over this guaranteed period if the holder dies during this initial term.
Unlike the other APIs this option is restricted to 0, 5 or 10 years, rather than 0 - 10 years.
Annuity providers offer Enhanced Annuities to policyholders with poor underlying health or lifestyle choices that increase the risk of an early death. These annuities offer a greater retirement income.
Annuity providers offer Enhanced Annuities to policyholders with poor underlying health or lifestyle choices that increase the risk of an early death. These annuities offer a greater retirement income.