Templated Reviews

Lifestyle Planning

Assuming a critical illness occurs at age 50 and results in a 5-year work stoppage, the projected income loss from age 50 to 54 would be approximately $650,000.

With the current CI coverage of $200,000, there remains a significant shortfall of about $450,000. In addition, assuming a 30% reduction in income post-recovery due to physical or mental limitations, there could be a further income drop of $545,000 over the following 10 years.

Current investment planning could serve as a supplementary buffer during the recovery phase, estimated to grow to a potential accumulation of $135,000 by age 50, based on an estimated 8% annual return.

Retirement Planning

Assuming preferred retirement spending at age 65 is $4,000 per month, or $48,000 annually. Factoring in 2.5% inflation, this amount would need to grow to approximately $111,000 a year to maintain the same lifestyle.

The current investment plan is projected to reach a base of $432,000 by age 65. At a 4% dividend yield, this would generate around $17,000 per year—leaving a significant shortfall of $91,000 annually to bridge.

To fully support this retirement lifestyle, the projected account base required is around $2.3 million by age 65, which would generate roughly $92,000 annually at a 4% return.

Checklist

Further work is needed to strengthen both insurance and retirement planning, along with a review of policy nominations to ensure a smooth and efficient transfer of assets.