Retirement planning system and method

A computer-implemented retirement planning system, comprising:

• report generation logic, the report generation logic being configured to generate a retirement plan report describing a retirement plan for an individual, the retirement plan comprising a series of phases in which the individual becomes successively less active in each phase, and the retirement plan report describing a retirement income arrangement for the retirement plan in which inflation-adjusted income allocated for lifestyle spending varies in accordance with an estimated marginal utility of money of the individual during retirement;
• data collection logic, the data collection logic being configured to receive data pertaining to an individual planning for retirement, the data collection logic being configured to present questions configured to elicit information concerning what level of income the individual considers to be a worst case scenario basic needs level of income and being configured to elicit information concerning the individual's tolerance for risk in connection with the prospect that actual retirement income during a final phase of retirement may be less than the worst case scenario basic needs level of income;
• and
• retirement modeling logic, the retirement modeling logic being configured to process the data to generate parameters of the retirement plan, the retirement modeling logic generating the parameters of the retirement plan based on the level of income the individual considers to be a basic needs level of income and based on the individual's tolerance for risk in connection with the prospect that the actual retirement income during the final phase of retirement will be less than the worst case scenario basic needs level of income, the retirement plan comprising a retirement income arrangement in which inflation-adjusted retirement income allocated for lifestyle spending is larger during early years of the retirement plan and decreases as the maximum life expectancy of the individual is reached.

A computer-implemented retirement planning method, comprising:

• receiving user inputs indicating a level of income an individual considers to be a worst case scenario basic needs level of income;
• receiving user inputs indicating the individual's tolerance for risk in connection with the prospect that actual retirement income during a final phase of retirement may be less than the worst case scenario basic needs level of income;
• and
• generating a retirement plan based on (1) the basic needs level of income and (2) the individual's tolerance for risk in connection with the prospect that the actual retirement income during the final phase of retirement may be less than the worst case scenario basic needs level of income.