Ahead of the sea-change in pensions in April 2015, Prudential has launched a free online tool to help advisers models clients’ prospective retirement plans, Les Cameron has said.
Les Cameron, a Prudential retirement specialist, said the tool, which is available on the Pruadviser website, takes information on adviser charges, the client’s preferred retirement age, the size of their pension pot and how often they contribute to it to answer questions about an individual’s retirement plan.
| Questions from clients the tool aims to answer |
| 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? |
It aims to help advisers answer clients’ questions on issues around how their retirement could pan out according to the amounts they spend or save, and how different financial products could perform.
Mr Cameron said: “Post-RDR, advisers want to generate more money or do what they do quicker.
“We wanted something simple and quick to use. A lot of these tools have lots of inputs.”
He added the tool would be a good way of showing consumers how their investments could perform if drawdown became “the number one choice” for pension pot use following this year’s Budget.
It allows clients to look at how much they are likely spend at certain stages - such as when they take holidays, cut back on spending, begin to receive the state pension or start to need long-term care - and how this could affect their finances.
Mr Cameron added: “Clients often want to play around with the criteria. Using this modeller means the adviser does not have to go back to the office and work out the new model. They can have the tool on their laptop or their tablet when they sit down with the client.”
The tool also uses Office for National Statistics data to show people how likely they are to survive to a certain age.
Adviser view
Justin King, chartered financial planner for Dorset-based MFP Wealth Management, said: “This tool is fantastic, but there is much more to retirement planning than these models.”
