Standard Life has launched a cashflow modelling tool for its Wrap advisers, enabling them to illustrate real time and future financial events to support the advice process pre and post retirement.
Working in collaboration with Focus Solutions, the data-light tool will enable advisers to quickly build a straightforward picture for clients that can be tailored for individual circumstances. It can take into account different events such as the state pension coming into payment, or a stock market downturn, enabling advisers to work through different scenarios with their clients and discuss the impact it may have on their investments.
Alastair Black, Head of Financial Planning Propositions at Standard Life, says: “The recent pension transfer paper (CP17/16) specifically highlighted the area of sustainability of income as a key consideration for defined benefit transfers, though this of course applies equally to all flexible income pots in retirement. The challenge for advisers is helping clients understand what this significant pot of money can and can’t do, in different circumstances, and for how long. Our new cashflow modelling tool has been designed to help with that.
“We’re aware many of our Wrap advisers already use existing cashflow modelling tools, but some advisers have been telling us they need more support – they’re looking for an easy to use support tool for clients, to help them understand their long term goals and financial aspirations, and whether they’re achievable. The industry needs to be able to support advisers when having these conversations, particularly with the increase in demand from people seeking advice on pension transfers.”
Elaine Walker, Director at 336 Financial Management Ltd, who trialled the tool, says: “We have tried cash flow modelling tools in the past but have found them too cumbersome and time consuming to show any real client benefit. This tool is much easier to use, and, as financial planning isn’t a straight line, the scenario planning aspect really brings it to life for our clients.”