We
have recently received inquiries as to how to use Copilot to implement
the Actuarial Approach. Copilot can use different data sources to
provide reasonable results, but we recommend that you provide Copilot
with the specific data required by the Actuarial Financial Planner. This
post explains the best way to use Copilot — whether you are an advisor working with clients or a retiree managing your own plan. Start with the Actuarial Financial Planner (AFP) WorkbookThe AFP workbook is the cleanest way to gather the inputs required for an actuarial funded‑status calculation:AssetsGuaranteed lifetime income streamsEssential and discretionary recurring expensesEssential and discretionary non‑recurring expensesLifetime planning period (LPP) assumptionsDiscount rate(s)If
different discount rates are to be used for essential
expenses/non-risky assets and discretionary expenses/risky assets, the
spreadsheet will ask you to quantify the percentage of such assets you
or your client considers to be risky and the percentage of such expenses
you or your client considers to be essential or discretionary. For
example, investments in bonds may be considered to be 70% non-risky and
30% risky. Include sales of future assets (like a home) if they are intended to be used to fund retirement.Assets
expected to be received in the future and spending amounts expected to
be paid in the future should be entered in future dollars (i.e.,
increased from today’s dollars with assumed inflation). Once the workbook is completed, users can simply upload it directly into Copilot. Copilot can read the inputs and compute:Present value of spending liabilities, essential and discretionaryPresent value of assets, non-risky and riskyCurrent funded statusSurvivor‑phase funded statusYear‑by‑year funded‑status trajectoryThis eliminates transcription errors. Ask Copilot to Interpret the ResultsThe actuarial approach produces clean, stable numbers — but users often need help interpreting them. Copilot excels at this.Examples of useful prompts:“Interpret my funded status using the actuarial approach.”“Explain whether my discretionary spending is sustainable.”“Analyze my survivor‑phase funded status.”“Evaluate whether my discount rates are reasonable.”“Stress‑test my plan using a lower return assumption(s) or higher assumed inflation.”Copilot can also explain the why behind the numbers — something most tools cannot do. Use Copilot for Scenario Analysis and Stress TestingBecause the actuarial approach is deterministic and transparent, Copilot can easily run:Longevity sensitivityReturn‑assumption/discount rate sensitivitySpending adjustmentsCustom return pathsShock scenariosThis gives advisors and DIYers a powerful way to explore “what‑if” questions without modifying the workbook itself. Use Copilot as the “Interpretation Layer” — Not the Calculation EngineThe Actuarial Financial Planner workbook is the actuarial engine. Copilot is the analysis layer.This division of labor is intentional:The workbook ensures actuarial rigor and transparency.Copilot provides interpretation, explanation, and scenario analysis.This avoids feature‑creep in the workbook while giving users a flexible analytical companion. Advisors Can Use Copilot as a Client‑Facing ToolAdvisors can upload a client’s completed workbook and ask Copilot to:Summarize the client’s funded statusExplain the sustainability of current spendingIdentify risksSuggest adjustments and risk management approachesProvide plain‑English explanations for clientsThis turns Copilot into a virtual actuarial analyst — one that works instantly and can tailor explanations to any level of sophistication. What Users Do Not Need to ProvideCopilot does not require:Tax modelingPortfolio allocation detailsMonte Carlo parametersDetailed budget categoriesHistorical return dataThe actuarial approach is deliberately simple and stable. The AFP workbook already contains everything required.SummaryTo
use Copilot with the Actuarial Approach, simply complete the Actuarial
Financial Planner workbook and upload it to Copilot. Copilot can read
the inputs, calculate the funded status, interpret the results, and help
you explore alternative scenarios.
