Planning for the unexpected isn't easy. The End of Life event will show you how your passing will affect loved ones, so you can plan for how to protect them now. Setting an age parameter in this event helps to focus your financial projections on time periods that matter the most to you.
Upon setting up your financial plan, you may see that your plan begins at your current age and ends at an end-of-life age. This means that your post-retirement financial obligations are projected to this future age, and the assessment of your overall plan status covers up to this age. According to the CDC, as of the first half of 2020, the average life expectancy for the US is 77.8 years. To be more conservative in post-retirement financial planning, the default end of life age is set to age 90.
After setting up your initial plan, you can adjust the End of Life event on your timeline to change this age level. Any changes to the End of Life age will adjust the overall time period and impact projections in your financial plan.
On the date of the End of Life event, My Financial Plan will end income and expense events, pay off all debts from assets, add an assumed final “Funeral & Estate” $10,000 expense, and include an assumed donation of 1% of retirement assets to charity.
Estate taxes and other estate planning considerations are not included in this projection. Please note that this End of Life event also assumes you will receive a lump sum payment from any life insurance policies. This payment is included to illustrate the benefit of life insurance, but in reality, any insurance payments would be provided to the beneficiary of the life insurance policy.