AMP has made upgrades to its Retirement Modelling Tool, which can now model 900 combinations of annuities, account-based pensions and Centrelink income, and stress test retirement strategies by running hundreds of differing scenarios.
The tool, which is available through AMP’s MyNorth and North wrap platforms, uses the risk profiles and circumstances of individual clients to produce visual timelines that summarise the retirement structures and income streams available to clients.
The upgrade will allow advisers to run 2000 scenarios for a specific retirement strategy and project different returns based on account market volatility and sequencing risk, as well as the probabilities of capital and income lasting for desired time frames.
AMP wealth products and platforms managing director Rod Finch said the modelling takes place in real time and allows advisers to test retirement strategies they have developed for clients and to factor in income and capital requirements.
“Centrelink pension payments, account-based pension and annuity structures, together with long-term market risks, are all considered,” Finch said.
“The modelling is a great demonstration of how technology can make the complex simple and to help in the delivery of great financial advice.”
