Starting the projections in the next year

In this article:

  1. How to change the Start Year of the Projections
  2. What happens to the projections when you open them in a new year?
1

How to change the Start Year of the Projections

Asset amounts and debt balances entered on the Assets and Debts pages are considered to be beginning of the year values for the start year of projections. Therefore, as we near the end of the year you may wish to start the projections in the following year. Here are more details about the assumptions made regarding the timing of withdrawals and contributions.

You have 2 choices for the start year of projections; the current year or the following year. You can adjust this year under Scenario Setup -> General.

On this page, select a year from the drop-down box Start Year.  

2

What happens to the projections when you open them in a new year?

When the year turns over and you open a scenario that was created the previous year with the new year as the start year:

  • Rebasing the scenario is not required. Scenarios will remain editable and will be calculated using the new year’s updated government amounts for taxes and tax credits after the deployment if you rerun them. (See below for details on how government benefits are affected.)
  • Assets and Debts
    • The starting values for Capital Assets, Real Assets, and Debts will remain the same since they were already considered the start of year values for the new year.
    • Values for the RRSP and TFSA Contribution Room remain the same as you previously entered, although the allowable RRSP maximum contribution amount and TFSA contribution amount will change based on the updated information for the new year.
  • Government Benefits
    • The CPP/QPP and OAS benefit amounts that you previously entered will be indexed by 1 year at the inflation rate specified for CPP/QPP or OAS. This will ensure that the values for CPP/QPP and OAS will remain the same as when you ran the scenario in the previous year. If you edit any fields for CPP/QPP or OAS, the new year's values will be referenced as opposed to the previous year's.
  • After-Tax Spending
    • You will notice that the After-Tax Spending (real dollars) amount will be automatically increased by the inflation rate in your scenario. This is to ensure the nominal dollar amounts of After-Tax Spending remain consistent between your scenarios.

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