It’s not uncommon to have clients that will go through a phase where they will be “semi-retired”. In this period stop earning their full pre-retirement salary, but continue earn money at a reduced level before they fully retire.
Let’s look at this question to technical support as an example:
I have a client who is going to semi-retire from his job in 5 years, and then work an additional 5 years earning half his salary. How do I make both entries to include his current earnings and the reduced future earnings in Advise?
To handle this situation, we suggest setting the client as retired in 5 years when he reaches semi-retirement. The program stops his current earned income at the retirement age. Then, to capture his reduce earnings for another 5 years, go to Special Income section. Enter a description like Reduced Future Earnings or Semi-Retirement Earnings, enter the after tax amount and increase rate. Make sure the first year of income is 5 years from now and lasts 5 years. This accounts for the higher earnings for the next five years and captures the reduced earnings for the following 5 years.
If the client continues contributions to assets during the semi-retirement period, make one more adjustment. Manually enter the number of years for contributions. When the number of years equals 0 the program assumes additions start at the entered starting year and end at retirement. If the starting year is less than the current year, it assumes additions begin the current year. Entering a custom number of years overrides this default assumption.
