Pension consultancy FinalytiQ Limited has launched an application to help advisers calculate sustainable withdrawal rates from their clients’ retirement portfolios.
The Timeline app allows financial planners to test various asset allocation models, demonstrate the impact of fees and help clients visualise likely outcomes at different stages of retirement.
Advisers can test withdrawal strategies developed by retirement researchers, such as Bengen’s baseline approach, Guyton’s guardrail strategies and Kitces ratcheting rules, to see how they align with client needs.
Abraham Okusanya, director at FinalytiQ Limited, said: “Timeline app isn’t a crystal ball. It uses extensive academic research, historical returns and mortality data to assess how a retirement strategy might fare under various market conditions.”
Users can also access Office for National Statistics (ONS) data to project potential longevity in order to determine how long their client might live, and so how long their savings would need to last.
Firms with one adviser can and up to 100 clients can purchase the app for £49 per month, while firms with between two and five advisers with no client limit can access it for £79 per month.
Enterprise businesses with more than five advisers must contact FinalytiQ for pricing arrangements.
Andrew Pennie, head of pathways at Intelligent Pensions, emphasised the importance of sustainable withdrawal planning as an ongoing consideration.
“It’s important people understand that sustainable withdrawal rates can and will change. Retirement can be for lengthy periods and it is inevitable that personal circumstances and needs will change over time, as will external market conditions,” Mr Pennie said.
“It is therefore vital to review withdrawal rates on both a personalised and frequent basis, if we are to really tackle the risks of running out of money.”
julia.faurschou@ft.com
