Since 6 April 2015 savers in the UK who are over 55 have a much greater range of options in accessing and spending their defined contribution pension pots. However, their decisions still have to take account of tax impact, longevity outlook, income sustainability and investment risk.
Lloyds said its planning tool enables advisers to engage clients early into the retirement planning process and helps them understand the immediate impact specific planning decisions will have on their income in retirement.
The new planning tool was created by Voyant and customised by Lloyds Bank Private Banking to help create a personalised financial plan by building up a picture of a client’s current position and then illustrating how any recommendations made would alter that picture.
“By using financial planning tools at an early stage in the process, savers will have more insight and understanding of their finances not just at the point of retirement but beyond,” said Richard Anderson, head of pensions policy at Lloyds Bank Private Banking.
The financial planning tool also features daily fund data from Morningstar, and a record of psychometric testing to map investment portfolios to the investment risk level appropriate to the client.