The tool was designed to show the extent of how purchasing power can reduce in time, which will allow advisers to give their clients a real-life example.
The calculator can be found at incomeintelligence.co.uk and uses two sliders to change the rate of inflation and the interest rate to see the ‘worth’ of the money at a future date.
Scott McKay, UK head of intermediary marketing for JP Morgan Asset Management, said the tool only takes a few seconds to use and would help advisers to seek income solutions for their clients.
The tool was developed to enable advisers to provide recommendations for other sources of income and diversifying assets.
IFA VERDICT
Nick Lincoln, director of Hertfordshire-based Values to Visions Financial Planning, said: “The tool is pretty rudimentary. Anyone with a grasp of Excel has been able to do these simulations for decades. It’s not something I’d ever use with clients. Even if the calculator was of any practical use, who wants to have a laptop between themselves and their clients?”
