BlackRock has unveiled a new tool which enables people to calculate how much they need to save to generate a specific annual retirement income.
Called CoRI, the new tool, is based on bond indices, which look at current interest rates, inflation expectations, mortality projections and other factors.
The tool uses real-world and real-time data which is updated daily, something that distinguishes it from similar tools for retirement planning which are retrospective, according to the provider.
It is powered by BlackRock’s CoRI Retirement Indices which totals 20 at present – one for a specific year when a person turns 65, from 2006 to 2025.
What is more, the tool allows investors to measure the value of their existing portfolios against their goals for retirement income and enables them to track the progress of their retirement income and adjust their investment plan if necessary.
Chip Castille, chief retirement strategist at BlackRock, said: “We have a once-in-a-generation opportunity to change people’s attitudes – they need to understand with certainty whether their savings will provide a sufficient income to support their desired lifestyle in retirement. CoRI will go some way to helping address that income challenge.”
Stuart Read, independent financial adviser at Devon based Sabre Financial Planning, said: “This tool could be useful because it uses real-time data, meaning it would be more accurate than similar services.”