CALCULATION METHODOLOGY

See how each educational estimate is calculated.

Lianest uses transparent formulas and editable assumptions. The figures are starting points for discussion—not substitutes for comprehensive advice or official product illustrations.

Last updated: 29 July 2026

Protection target

Income target = monthly income × 12 × selected protection multiple.

Estimated protection target = income target + outstanding debts + education goal − available savings and assets.

Additional cover to consider = estimated protection target − existing life cover, with a minimum of zero.

Protection multiples

The 5×, 10× and 20× choices are simple income-replacement benchmarks. They are not product recommendations. A comprehensive review may consider dependants, time horizon, inflation, existing benefits, liquidity, taxation and other goals.

Expenses and dependants

The expense percentage estimates disposable monthly income for an advisor’s affordability discussion. It does not reduce the quick protection target. The optional dependant count adds context for a later review but does not change this benchmark calculation.

4% retirement guide

Yearly portfolio-funded income = desired monthly retirement income × 12 − other reliable yearly income.

Estimated portfolio target = yearly portfolio-funded income ÷ 4%.

The saving scenarios use equal end-of-year contributions, start from zero and apply the displayed hypothetical annual return. The guide does not model inflation, taxes, fees or sequence-of-returns risk.

What-If Analysis

Monthly contributions are added for the selected payment term. When an allocation schedule is enabled, only the entered allocation percentage is added to the projected investment value.

The simplified net annual assumption is calculated as (1 + growth rate) × (1 − annual charge) − 1, then converted to an equivalent monthly rate for compounding. The 2.5% charge is an editable illustrative default—not a universal product charge.

Important limitations

Actual values may be affected by product-specific allocation, administration charges, insurance and rider costs, fund OCFs, adviser charges, withdrawals, currency conversion, taxes and market performance. Always refer to the provider’s official illustration and policy documents for product-specific figures.