What calculation is used in the real money simulation

The relevant factors, for the 'Real Money' simulation are as follows:

1. The RPI assumption for the plan (as shown in Preferences > Plan Preferences > Default Inflation/Growth Rates).

2. The time period (n). To arrive at 'n', count the number of 'plan years', and deduct 1. For example, if Year One = 2017, and we wish to calculate the 'real value' of the client's Net Worth, in 2020, 'n' would equate to 4-1 (i.e. 3).

3. A 'Present Value Interest Factor' table like the one linked to here (for illustrative purposes only).

This table provides the factors by which to calculate the 'present value' of $1 (when that $1 is to be received, or spent at some point in the future).

As an example, let's take a plan beginning in 2017. From the Let's See screen, we might select a random year, say 2024, and note that the client's (nominal) net worth is 1,263,070 in that year. With reference to #2, above, we know that N = 7 and, if our RPI assumption is 3%, then from the aforementioned table (see #3, above), we can ascertain that the appropriate factor, therefore, is 0.813.

So, the 'real' (i.e. inflation-adjusted) Net Worth (for the year 2024) = 1,263,070 x 0.813 = 1,026,876 

The same logic can be applied to the value of the client's future expenses, income etc.