Retirement Portfolio Planner (US Edition)

Retirement Portfolio Planner (US Edition)
The Retirement Portfolio Planner is a risk analysis and financial planning engine specifically designed for practitioners in the retirement income
market. Using our core stochastic modeling platform capability, it supports advisors in identifying optimized retirement income solutions,
aligned with the individual retiree’s income and capital needs, as well as their capacity for loss. The Retirement Portfolio Planner can be
configured in line with our client’s own retirement product offering and advice model.
The Challenge: Identifying Optimized Retirement Solutions and Demonstrating Suitability
Savers lose more money through bad decisions at retirement than at any other stage of the savings life-cycle. Traditional advice
propositions, often base investment recommendations on a client’s risk attitude and associated target volatility range, or risk-rated funds.
This approach does not capture the risks facing retirement clients, where the objective is focused on achieving a stable level of income as
opposed to asset growth.
Recommendations based on these “accumulation” models will expose customers to unacceptable levels of risk. A different approach is
necessary to effectively demonstrate investment suitability to clients at retirement.
The Solution: Sophisticated Stochastic Modeling of Retirement Income
The Retirement Portfolio Planner is a modeling and analytics engine supporting the full range of retirement products and income strategies.
It allows advisors to capture a client’s retirement needs, identify optimized retirement solutions, and support effective communication of
the risks and benefits of different products and strategies. The Retirement Portfolio Planner provides a comprehensive and objective basis to
demonstrate suitability in a retirement context.
RETIREMENT PORTFOLIO PLANNER: POWERING THE NEXT GENERATION OF RETIREMENT PLANNING SOLUTIONS
Retirement Income Planning Solutions
Retirement Portfolio Analysis
Retirement solution options
Retirement
options
Income
sustainability
Detail
Risk
tolerance
Expected
death benefits
Guaranteed
value (£ pa)
Annuity
100%
Moderate
£0
£13,900
Drawdown Cautious
30%
Cautious
Drawdown Balanced
64%
Drawdown Growth
79%
£54,750
£0
Balanced
£82,200
£0
Moderate
£101,900
£0
Drawdown Adventurous
83%
Adventurous
£127,050
£0
Annuity & Drawdown Cautious
57%
Cautious
£43,375
£3,200
64%
Cautious
£59,212
£2,500
Balanced
£65,705
£1,750
Annuity & Drawdown Cautious
Annuity & Drawdown Balanced
63%
INVESTMENT TERM (AGE)
RISK TOLERANCE
75 years old
Moderate
Scatter chart
Income
comfort zone (£ pa)
INCOME TARGET
£5,000
MIN
£10,000
£15,000
MAX
Application Programming Interface (XML, API)
Retirement Portfolio Planner
Retirement Needs,
Capture & Analysis
Retirement Fund Value
Retirement Product
Modeling
Retirement Portfolio
Analysis & Optimization
Investment Strategies,
Target Date
Client Risk Profiling
Systematic Withdrawal Plans
Product & Portfolio
Configuration Options
Capital/Death Benefit
Guarantees: Variable Annuity
CPPI
Risk-graded Investment Options
Risk Profile & Capacity for Loss
Configurable Annuity Pricing
Income Target, Income Profile
Minimum Income (Floor)
Configurable Optimization
Functionality
Equity Release
Wealth Scenario Generator Layer
Stochastic
Asset Projections
Investment
Portfolio & Modeling
Product Rules &
Cash-flow Modeling
Mortality & Annuity
Modeling
Asset & Economic Modeling Layer
Asset Returns
Interest Rates
Inflation
Currencies/FX
Mortality
The Retirement Portfolio Planner helps you build
optimized propositions which fit your clients’ income and
capital needs.
The Retirement Portfolio Planner can be configured to fit
into your own customized retirement product or advice
service proposition.
Retirement Portfolio Planner
The Retirement Portfolio Planner Helps Advisors Answer the Following Questions:
»» How do we help the client seeking retirement income to understand their options?
»» How do we measure a client’s risk attitude and capacity for loss, in a retirement planning context?
»» What is the optimal combination of products to deliver the client’s needs for income, capital and liquidity?
»» What is the most appropriate investment strategy, aligned with the client’s risk attitude and capacity for loss?
»» How can I demonstrate and record suitability in relation to retirement income plans?
The Retirement Portfolio Planner includes our Award-winning Economic and Investment
Modeling Capability
The Retirement Portfolio Planner gives our clients:
»» Institutional quality stochastic (economic scenario generation) capability.
»» Ability to capture key risk factors driving retirement outcomes: asset returns, interest rates, inflation and mortality.
»» Quarterly updates to economic assumptions, consistent with current market prices and market conditions.
»» Wide range of assets modeled consistently across multiple markets, including real estate, alternatives, hedge, commodities, infrastructure
and emerging market debt.
»» A multi-currency, multi-economy model that supports advice and planning solutions in any market or currency.
»» Comprehensive documentation of all models and quarterly economic assumptions.
»» Ability to model a wide range of sophisticated product features: asset allocation and target date glide-paths, guarantees, investment-linked
and variable annuities.
»» Modeling functionality that can be configured for the advisor’s own retirement proposition and product terms.
Integration and Deployment
The Retirement Portfolio Planner has a fully documented application programming interface (API), designed to support easy integration
with existing client services, platforms and toolsets. Our Implementation Services team helps clients design and integrate their own planning
solutions.
Moody’s Analytics supplies the Retirement Portfolio Planner calculation engine and API, configured according to our client requirements.
Clients may then create the end-user interface according to their own brand and user experience requirements.
Alternatively, a number of solution partners have already integrated the Retirement Portfolio Planner into their financial planning propositions
and platforms, powering stochastic analysis for their clients.
2 MOODY'S ANALYTICS
Helping Keep the Retirement Income Plan on Track
Building a retirement income plan involves a difficult trade-off between current
withdrawal level, the risk of future income shortfall, and access to capital on death.
With recent difficult market conditions, and the impact this has had on many
withdrawal plans, advisors need tools to review client’s priorities, and present clients
with options to ensure retirement income plans remain on track.
Advisors may perform 'what-if' analysis to examine potential options to ensure a
client’s income and capital needs are met by their retirement plan and answer key
clients’ questions:
»» Will I have enough income to maintain my standard of living?
»» Will my income last for my entire lifetime?
»» Will I have capital to leave my dependents?
About Moody’s Analytics
Moody’s Analytics, a unit of Moody’s Corporation, helps capital markets and credit risk
management professionals worldwide respond to an evolving marketplace with confidence.
The company offers unique tools and best practices for measuring and managing risk through
expertise and experience in credit analysis, economic research and financial risk management.
By offering leading-edge software and advisory services, as well as the proprietary credit
research produced by Moody’s Investors Service, Moody’s Analytics integrates and customizes
its offerings to address specific business challenges.
MOODY'S ANALYTICS 3
CONTACT US
Visit us at barrhibb.com or contact us at a location below:
AMERICAS
+1.212.553.1653
[email protected]
EMEA
+44.20.7772.5454
[email protected]
ASIA (EXCLUDING JAPAN)
+85.2.3551.3077
[email protected]
JAPAN
+81.3.5408.4100
[email protected]
© 2014 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
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