Assumptions, inflation and uncertainty

Growth is applied as a steady average. Real returns rise and fall, and poor early years matter most when you’re withdrawing money.

Inflation reduces what money buys. The Forecast shows each future year in that year’s own pounds, so later figures already include the inflation you assume. The rate you assume is shown above the chart as “Inflation assumed”. Select “Change” beside it, or use the Assumptions panel, to edit it; it grows your spending, salary, assumed State Pension and anything else linked to inflation each year. Rates you have entered yourself are not changed.

To model no inflation at all, set the rate to 0%. “Reset” returns it to the default of 2.5% a year.

Your current balances are the amounts you entered, valued at the end of the date shown with them, so anything paid or earned that day is already included. The forecast starts the next day and runs in calendar years, January to December. The first year only counts the rest of that year, from the day after the valuation date to 31 December. Your plan does not hold payment dates, so monthly amounts are spread evenly over those days. That applies to spending and to salary, pensions, contributions and other regular income alike: a 20 October date leaves 72 of 365 days (21 October onwards), so £1,000 a month becomes £12,000 × 72 ÷ 365, about £2,367, whether it is coming in or going out. Growth and interest use the same days. So if your take-home income and spending are the same, the first year leaves no surplus. For a part year, the Forecast shows the surplus as a total for the period rather than a monthly figure. A 31 December date starts the forecast with a full year from 1 January. Plans saved without a valuation date still count a full 12 months in the first year.

Future pounds are the amounts you would actually see in each year. Today’s money divides those amounts by inflation since this year, so you can compare them with prices now. Your inflation rate is an assumption: it drives spending and pay rises, whichever way figures are shown.

Select a year to see how your savings changed: the opening balance, money saved, growth, withdrawals and fees, adding up to the closing balance. In today’s money every line for that year is adjusted by the same amount, so one year’s opening figure may differ from the previous year’s closing figure.

Your pay rises with inflation by default. You can keep it fixed or set your own yearly change in your details. A fixed salary is worth less each year in today’s money. Select the ⓘ beside the inflation rate on Forecast to see how your salary and spending are treated, described in whichever view you have chosen.

You can also add a periodic pay increase, such as 10% every 3 years, for promotions or larger pay rises. It applies to employment pay only and stops when you stop work. The schedule counts from the date your balances are valued, and the Forecast shows the date of the first increase beside the setting. Each person has their own pay-increase settings, which you can change on the Forecast or the Dashboard; changing one person’s never changes anyone else’s.

The Dashboard and Forecast use the same yearly figures and the same tax setting. Open “How is this calculated?” under your legacy to see how the total is built up.

If your spending is entered as £0, the forecast can’t tell you whether retirement is affordable. Enter your living costs for a real answer.

Plan for a long life: average life expectancy is only an average.

What FLYNQD doesn't model yet

FLYNQD uses fixed average rates. It doesn’t run random market simulations.

Explore in your plan

• Open your forecast

Related guides

• Understanding your forecast
• Retirement mistakes that could be avoided