What assumptions and calculation simplifications are being used in EVPro Goal?

The cashflow projections include a number of assumptions and current calculation simplifications. These include the following:

  • All Actions (excluding the repay a debt action) are executed at the start of the reporting year in which the date entered falls – this applies to actions (Sell a Property, Buy an Annuity, take PCLS and Invest a Windfall) for both main life and 2nd.
  • All charges are taken at the end of the year based on the starting fund value.
  • The calculation of the outstanding loan amount for a debt assumes that all prior debt repayments have been fully paid, even in periods where there is a shortfall in income to meet them.
  • Tax Calculations in each reporting year use the tax rates and bands applicable at the start of that reporting year, there is no pro-rating for cross-over of tax years.
  • Capital Gains are taxed assuming that clients are higher rate tax payers.
  • Net of Tax income calculations for Scottish Tax Residency assume that the upper and lower limits of the basic rate tax band (20%) remain fixed until 2026/27, in line with all other tax bands remaining fixed during this time.
  • The £2,000 annual dividend allowance is assumed to be fixed until 2026/27 and to increase each year thereafter at CPI.