Financial Independence is a Number

Financial independence is optionality

Financial independence is commonly used to describe a position where assets may support modelled expenses without employment income.

Plan in Decades does not determine whether that position has been reached. It calculates numerical benchmarks from the inputs and assumptions in a scenario.

The two levers: expenses and assets

Within the model, the benchmark comparison changes when either of these inputs changes:

• Your expenses go down
• Your assets go up

Investment returns, tax, inflation, fees, pension access, and the modelled time period also affect the result.

How to model it in Plan in Decades

The core question is simple:

In which modelled year do invested assets first reach the selected expense multiple?

To inspect that calculation:

1. Start from Wealth Tracking so your current position is realistic.
2. Create a Scenario from your latest snapshot.
3. Review the scenario’s expenses, tax, cash flow rules, and other assumptions.

Where this shows up in the product

Your FI number and retirement timing are heavily influenced by:

• Spending assumptions
• Savings and contribution rates
• Investment returns
• Inflation
• Pension access and withdrawal timing

If you want the benchmark behind the number itself, read Your Retirement Number.