Methodology

Model version 1.0, November 2026.

CoveredYears uses standard methods from personal financial planning and actuarial practice. Each result in your report shows its inputs and assumptions, and you can change any of them.

Value of your future income

Your expected take-home pay for each year until retirement, grown by wage growth, weighted by the probability of being alive that year, and discounted to today. The discount rate is a risk-free rate plus a premium that is higher for less stable incomes.

Life cover

A needs analysis: one-off costs (final expenses, emergency fund, outstanding loans) plus today's value of the household's ongoing costs, minus the surviving partner's income, existing life cover and savings. Support for each dependant runs for a set number of years, not for life.

Disability cover

The income your household would lose if you could no longer work, minus an estimate of state disability benefits, until retirement age.

Home and liability

The cost of rebuilding your home compared with the amount it is insured for, plus a check of liability cover.

Retirement

The amount needed at retirement to pay your spending, minus the state pension, for your expected years in retirement, compared with your projected savings. The report shows the age at which savings would run out and the extra monthly saving that would close the gap.

Goals

The monthly amount to set aside for a goal such as a home or education, shown next to the cost of borrowing for it instead.

Assumptions

• Life tables: CDC 2023 for the United States; elsewhere a Gompertz model calibrated to national life expectancy.
• Country defaults for salaries, living costs, tax rates, retirement age and state benefits are approximate starting values.
• Interest, inflation and wage growth rates are listed in the report and can be edited.

Limits

Results are estimates, not forecasts. The model does not cover detailed tax rules, investment selection or your personal health. It never recommends specific products.