Step 4: Income Reliability Ratio
This tells you where you stand in terms of your Retirement Income Security. It is from 0 to 100%. The higher your ratio, the higher your Retirement Income Security. This means your Guaranteed Income will sufficiently cover your Lifestyle Expenses regardless of a market decline or other challenges like living longer.
If your ratio is low, you may want to consider how these challenges can impact your long term retirement strategy. Consider if you are comfortable with your savings and investments funding your needs. They are less predictable due to market volatility, changes in interest rates or other factors.