Digital Retirement is an online retirement planning and investing solution that considers an individual’s retirement income/expense needs, lifestyle and other circumstances and offers suitable product and tax optimised recommendations throughout the accumulation, at-retirement and decumulation phases. This solution can be delivered entirely digitally or, in some cases, in a semi-automated manner through human adviser interaction to deal with complex scenarios.
Digital Retirement is typically powered by a centralised investment proposition (CIP) and implemented with multiple strategies (Model Portfolios, DFMs, Multi-Asset Funds). In many cases, those investment recommendations may need to be compared with annuities and other products on offer to meet the regulatory needs regarding at-retirement and decumulation phases.
There is a significant growth in digital retirement solutions due to the growing number of savers opting to control their retirement finances flexibly by converting their pensions from DB to DC schemes. Investors are seeking greater pension transparency and better access to retirement planning advice. Our solutions allow firms to efficiently engage with customers through the accumulation, at-retirement and decumulation phases.
One of the asset managers set out to create a digital retirement platform in their market to provide individuals who are about to retire with pension decumulation options both digitally and through a financial planner. The project named ‘My Retirement Solution’ was worked on and launched during the tough covid times.
The solution we offered had to be one that complemented their existing business. Therefore, working together, we recognised that the business model had to be powered by our APIs and had to serve both in a purely digital manner and when offered the solution through internal financial planners and third-party financial planners. Going live with this solution is an excellent outcome, considering the challenging conditions covid-19 posed to project timelines and staff morale.