Seven Investment Management has launched a free gaming-style app in a bid to tackle the “frightening” level of pensions knowledge in the UK.
The app called ‘My Future’ uses gaming features and colour-codes to show how many years the client will ‘be in the red’ based on the information they have entered.
Tom Sheridan, chief executive of 7IM, said: “It is frightening but we are saying what most advisers already know: the biggest factor putting people off investing enough into a pension is not appreciating just how much they need.”
“Undoubtedly markets are volatile at the moment, but for those with a long investment horizon it is far more risky to take no risk.” Urquhart StewartJustin Urquhart Stewart, 7IM co-founder, said the app could help advisers educate clients about the need for taking on investment risk.
He said: “Undoubtedly markets are volatile at the moment, but for those with a long investment horizon it is far more risky to take no risk.”
The My Future tool is a new feature on the 7IMagine app, and allows advisers to punch in detailed numbers about clients’ existing savings and pension contributions, as well as spending expectations in retirement.
The firm is offering white-label versions of the app to financial advisers.
Click here to see the product review.
Dave Penny, managing director of Taunton-based Invest Southwest, said: “Anything that aims to help people understand the shortfalls in their pension plan is a good thing, so I have to commend 7IM for that.
“I think a lot of advisers might use the offering as a white label, but we have always felt very uncomfortable about using tools that are linked to people selling things to us.
“We have always made sure we independently source independent tools that are not linked to any sales drive. However, I think ultimately it’s a really good idea and the more of these the better.”
katherine.denham@ft.com
