Summary
Surplus funds can be assumed as spent or moved to a default cash account.
You can configure the treatment of surplus funds in Plan Settings > Plan Details.
The Default Surplus Cash account automatically captures excess income (income greater than total spending).
Advisers can manage surplus cash: keep it, contribute, or transfer it to other accounts.
Description
The Surplus Cash account introduces a more accurate and flexible way to model how clients handle surplus income. Whenever the annual net income exceeds total spending (including taxes, fees, and contributions), the surplus is automatically added to this dedicated account instead of being treated as consumed.
When the 'Assumed surplus as spent' toggle is turned off, each financial plan will include this account by default and display it in the Liquid Assets tab within Settings (read-only). Advisers can then decide how to use these funds — leaving them as cash, using them as a contribution source, or transferring them to another account.
The account is:
Automatically placed first in the withdrawal order,
Available as a source for contributions to other accounts,
And visible in plan comparisons and reports for full transparency.
Existing plans remain unchanged, maintaining 100% spend assumption unless the adviser explicitly enables surplus handling.
Example
Consider a couple whose after-tax income is £100,000 and annual spending totals £60,000. The resulting £40,000 surplus will automatically be added to the Surplus cash (default) account.
The adviser can then:
Keep the funds in cash for liquidity,
Transfer them into an ISA or pension as contributions,
Or use them for scheduled withdrawals and future expenses.
Conclusion
The Surplus Cash account brings Timeline Planning closer to real-life financial behaviour. It allows advisers to demonstrate the tangible benefits of disciplined surplus management, improving plan accuracy, client trust, and financial well-being.