AMP’s newly upgraded Retirement Modelling Tool can now model 900 combinations of annuities, account-based pensions and Centrelink income, and stress test retirement strategies by running 2,000 scenarios.
Available through AMP’s MyNorth and North wrap platforms, the real-time modelling allows advisers to test and develop retirement strategies for their clients, factoring in risk profiles, income and capital requirements.
“The Retirement Modelling Tool’s technology makes it easier for advisers to help their clients achieve their retirement goals,” commented Rod Finch, AMP’s Managing Director Wealth Products & Platforms.
“The modelling incorporates the risk profiles and circumstances of clients to produce simple visual timelines which summarise available retirement structures and income streams.
“Centrelink pension payments, account-based pension and annuity structures, together with long-term market risks, are all considered.
“The modelling is a great demonstration of how technology can make the complex simple, and to help in the delivery of great financial advice.
“Continuing to strengthen MyNorth’s technology capabilities is an ongoing focus for AMP,” said Mr Finch.
Key features of the technology include:
- 900 combinations of annuities, account-based pensions and Centrelink income can be compared and modelled
- The ability to run 2,000 scenarios for a specific retirement strategy, projecting different returns taking into account market volatility and sequencing risk
- Retirement strategies can be stress tested, with probabilities of capital and income lasting for desired time frames
- Retirement investment portfolios can be structured, incorporating relevant Centrelink income, and
- Simple visual displays, including charts and timelines, provide advisers with a clear picture of the strategies and comparative outcomes.