Prudential launches retirement modelling tool for advisers

The Prudential Retirement Modeller has the flexibility to map the client’s individual retirement journey based on their expectations and circumstances.

Based on each client’s circumstances and lifestyle choices, advisers can use the modeller to help answer questions on their income, retirement goals, and how they plan to contribute towards their retirement.

All responses are unique to the client and each question is answered with a simple, single sentence and the supporting information behind each calculation is displayed as a chart or table. These can then be used by the adviser to discuss with the client the true cost of making certain lifestyle choices, such as taking that extra holiday or making a choice between repaying their mortgage or making pension contributions, on their retirement savings pot and subsequent retirement income.
 

Les Cameron, retirement specialist, at Prudential said:

“The changes proposed in this year’s Budget are good news as they should incentivise saving and give retirees more choice.

“But with more choice comes increased risk. Therefore a greater level of planning is required to make sure that the clients are fully prepared for retirement and understand the impact of the choices they make on the retirement income they receive.

“People can often underestimate or overestimate the length of their retirement and the level of savings that they’ll need. If people spend too much of their pot, they could outlast their hard earned savings or if they are too cautious, they could risk denying themselves the basic things necessary for a decent standard of living, only to die earlier than expected.

“Advisers have an increasingly important role to play as many look for reassurance that they have the right plans in place and to understand the impact of the choices they are making.

“The launch of the Prudential Retirement Modeller makes a significant investment and an important development in our continued support of the adviser market. We’ve already tested the Modeller with a number of advisers and their feedback has been overwhelmingly positive.”