Summary
The Manage Target screen currently offers two age-based adjustments — Limit Inflation in Old Age and Decrease Target Income in later years — that help refine and manage a client's target income as their needs change with age. Because both adjustments are driven by client age, they can fire earlier than intended for plans built around older clients, where the plan begins close to or beyond the standard age advisors may use when planning. The new Earliest Plan Year to Adjust Income field gives advisors a floor that prevents either adjustment from taking effect before a specified plan year, while leaving the existing age-based logic in place. The default value for this new field is blank, so existing settings for limit inflation or decrease target will not be affected by the addition of this new field.
SIPS Implementation Summary
- New field (Earliest Plan Year to Adjust Income) added to the Manage Target screen
- Field applies to both the Limit Inflation in Old Age and Percent Decrease in Target Income adjustments
- Field is optional; blank or zero preserves existing behavior
- There will be no impact to existing cases — the field defaults to blank on any plans with Target Incomes created before this release
Detailed Changes
A new Earliest Plan Year to Adjust Income field is now visible on the Manage Target screen.
The value entered in the Earliest Plan Year to Adjust Income field applies to Limit Inflation in Old Age and Percent Decrease in Target Income simultaneously.
Leaving the field blank or entering zero means no floor is applied — the adjustments behave exactly as they did before this release.
The field is blank by default, therefore any scenarios with a target income will not be affected by this enhancement.
How the Earliest Plan Year Floor Interacts with the Age-Based Triggers
When a value is present in the Earliest Plan Year to Adjust Income field, the Limit Inflation in Old Age and Decrease Target Income in Later Years features will now occur in the later of two events: the plan year in which the client reaches the configured trigger age, or the plan year entered in the Earliest Plan Year to Adjust Income. In summary, whichever comes later is the year in which the adjustment begins.
Example 1 (age-based trigger is later): Limit Inflation in Old Age is set to age 80, which falls in plan year 15. Earliest Plan Year to Adjust Income is set to 10. The adjustment begins in plan year 15, because the age-based trigger is later than the floor.
Example 2 (the floor is later): Limit Inflation in Old Age is set to age 70, which falls in plan year 5. Earliest Plan Year to Adjust Income is set to 7. The adjustment begins in plan year 7, because the floor is later than the age-based trigger.
Example 3 (floor disabled): Earliest Plan Year to Adjust Income is blank or zero. The adjustments fire exactly as they would have before this release — purely on the age-based trigger.
