On the Snapshot page, we have added a new section for Capacity For Loss.

This shows the client's sustainable income in the worst historical scenario. You can find this same scenario by finding the red line on the Sustainable Withdrawal chart.

We categorise a client's Capacity For Loss based on what their lifestyle would look like in the worst case scenario. We have defined lifestyle based on the Pension And Lifetime Savings' research into retirement income.

The PLSA have categorised spending into three groups, which we have re-named as:

  • Essential
  • Comfortable
  • Luxurious

Please note that these categories vary depending on whether the spending refers to a single person or a couple. You can find out more information here.

We have three levels of capacity for loss:

Level

Definition

Low

Less than 75% of comfortable spending covered in the worst case scenario

Medium

75%-90% of comfortable spending covered in the worst case scenario

High

More than 90% of comfortable spending covered in the worst case scenario

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