Wealth Wizards has launched a retirement calculator for advisers to help them determine how much capital their clients will need in retirement.
The launch follows the introduction of the Pensions and Lifetime Savings Association’s retirement living standards last week (October 17) which help savers understand how much income they might need in retirement based on lifestyle choices.
Wealth Wizards’ retirement tool was designed with advisers in mind and offers examples of what clients’ money will buy when they retire, allowing people to visualise that in today’s terms.
The tool is available via a web app and is initially available as a free demo for advisers.
Martin Harris, head of advice at Wealth Wizards, said the tool had been built in a way to allow advice firms to buy a version which can then be developed to link in with the firm’s own branding and website.
It is not yet known how much this will cost advisers.
Mr Harris was part of the PLSA working group to define the Retirement Living Standards after a consultation with several representative consumer groups.
He said: “The PLSA’s work resonated deeply with Wealth Wizards’ mission to make financial advice affordable and accessible. It was an honour to work closely with them to come up with our new tool.
“Our adviser platform, Turo, and our digital financial adviser, MyEva, both originate from a desire to give more people access to guidance and advice. The addition of our new retirement tool based on the PLSA’s research should make planning with them even easier.”
The PLSA standards provide savers with tangible income goals in order to achieve different standards of living in retirement.
The three levels are minimum, moderate and comfortable, and the standards have been designed to fill the perceived gaps in current approaches and aid advisers when helping their clients with retirement planning.
The minimum level centres on a pension of £10,200 per year for an individual saver and £15,700 for a couple, which the PLSA said should cover the minimum living standards as well as leaving some income for social occasions.
The moderate lifestyle (£20,200 a year for singles and £29,100 for couples) provides, in addition to the minimum lifestyle, more financial security and more flexibility.
At the comfortable level (£33,000 a year for singles and £47,500 for couples), retirees could enjoy a more luxurious retirement, such as going on more holidays, according to the standards.
The PLSA wants its Retirement Living Standards to become a widely adopted industry standard.
This would result in pension providers publishing them in annual statements and advisers using them when developing personalised targets for their clients' pension planning.
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