A retirement income with a pay rise built in, and a safety net underneath.
We agree the rules before you retire. When your investments do well, your income goes up. When they don't, it dips a little for a while and a cash reserve takes the strain. No guessing, and no panic decisions.
I say this in almost every first meeting, because it is the whole job in two lines.
Most plans only worry about the first one. They ask you to pick one income at 65 and hope. Pick too high, and a bad few years early on can do lasting damage. Pick too low, and you spend your best years living on less than you could have, while the money sits there.
Neither can be guaranteed, which is exactly why the plan has rules.
The money should support the life it was built for.
How it works
Three rules, agreed in advance.
i.
Start sensibly
An income set around your pensions, savings, tax and how flexible your spending is.
ii.
Good years: a pay rise
If the plan moves comfortably ahead, your income goes up at the annual review.
iii.
Bad years: a small, temporary trim
Two to three years of spending sits in cash, so nothing has to be sold when markets are down.
Before you retire, you'll know exactly what happens to your income if markets fall 20%. Most people are never told.
Illustrative only. The actual rules are set around your age, tax position, guaranteed income, spending needs and capacity for loss. Income can fall as well as rise.
Try it
Put in your numbers. See the rules in pounds.
Enter three figures to see how an illustrative Guardrails plan might react when markets rise or fall.
The result is not personal advice. It is a simple way to understand the mechanics before applying them to your wider retirement plan.
Result
Fill in the form and the framework numbers will appear here.
Illustrative only. The calculator does not assess tax, investment risk, spending flexibility or personal suitability.
An illustrative 15-year journey
Fifteen years, three moments.
This example shows how the same retirement plan can respond differently as markets rise, fall and recover.
①
Year 3 — a pay rise
Markets have been kind and the plan is comfortably ahead, so income goes up at the annual review.
②
Year 9 — a bad patch
Markets fall. Income is trimmed for a while and the cash reserve pays the bills, so nothing is sold at the bottom.
③
Year 12 — recovery
Markets recover. Income goes back to where it was and the cash reserve is topped up again.
Illustrative only. Actual decisions depend on the client's circumstances, tax position, spending needs and the wider financial plan.
Further reading
The Financial Guardrails guide — in full.
A plain-English explanation of the framework, including the cash reserve, annual review rules and a worked retirement journey.
A 30-minute call is usually enough to discuss the income you need, what you already have in place and whether the Guardrails approach could be relevant.