Prudential plc has launched an online retirement modelling tool to help advisers give their clients simple answers to the complex questions about retirement planning.
The only online tool of its kind in the market with an integrated mortality measure, the Prudential Retirement Modeller has the flexibility to map the client’s individual retirement journey based on their expectations and circumstances.
Based on each client’s circumstances and lifestyle choices advisers can use the modeller to help answer questions such as:
- How much income could I receive from my savings?
- What growth rate would I need to meet my retirement goals?
- How long could my income last and how does this compare with my survival probability?
- How much do I need to accumulate to have the retirement I want?
- How much do I need to contribute to build this up?
Retirement planning can be daunting for clients and it involves multiple complex calculations for the adviser. The Prudential Retirement Modeller is designed to take the pain out of the number crunching allowing the adviser to concentrate on helping their client understand what their retirement may look like in a visually attractive and intuitive way.
All responses are unique to the client and each question is answered with a simple, single sentence and the supporting information behind each calculation is displayed as a chart or table. These can then be used by the adviser to discuss with the client the true cost of making certain lifestyle choices, such as taking that extra holiday or making a choice between repaying their mortgage or making pension contributions, on their retirement savings pot and subsequent retirement income.
Les Cameron, retirement specialist, at Prudential said: “The changes proposed in this year’s Budget are good news as they should incentivise saving and give retirees more choice.
“But with more choice comes increased risk. Therefore a greater level of planning is required to make sure that the clients are fully prepared for retirement and understand the impact of the choices they make on the retirement income they receive.
“People can often underestimate or overestimate the length of their retirement and the level of savings that they’ll need. If people spend too much of their pot, they could outlast their hard earned savings or if they are too cautious, they could risk denying themselves the basic things necessary for a decent standard of living, only to die earlier than expected.
“Advisers have an increasingly important role to play as many look for reassurance that they have the right plans in place and to understand the impact of the choices they are making.
“The launch of the Prudential Retirement Modeller makes a significant investment and an important development in our continued support of the adviser market. We’ve already tested the Modeller with a number of advisers and their feedback has been overwhelmingly positive.”
The Prudential Retirement Modeller is available free of charge at www.pruadviser.co.uk.
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