communicating on the impact of COVID-19 on retirement
visualizing the impact of continued investing
Upon retirement, a customer can choose to buy a fixed income product (annuity) and/or to keep investing, delivering a variable income. This choice has much to do with someone’s risk appetite. Risk appetite is already determined in the accumulation phase with a questionnaire, resulting in an investment allocation and fund selection.
A small addition to this questionnaire would be enough to guide the client in the choice for the decumulation phase. This phase have various ‘degrees of freedom’: combining decumulation with variations of continued investment. Visualizing these provides a complete picture of cause and – projected - effect.
goals, risk and other pensions
Adding a retirement income goal to the solution enables you to monitor if the goal is on track. The system can then re-evaluate the user’s preference and risk appetite on a frequent basis.
Of course, for the more complex matters such as risk coverage and fiscal consequences, an adviser can provide added value. A holistic approach can be sought to aggregate other pensions.