Vanguard launches Retirement Income Builder tool

At the same time as it prepares to move more directly into the Australian superannuation market, Vanguard Australia has launched the Retirement Income Builder (RIB) tool to help advisers deliver client investment and drawdown strategies for retirement.

Vanguard said the RIB tool formed part of its commitment to building a digital ecosystem that helped advisers streamline their client service offerings and created efficiencies in their business models.  

Rebecca Pope, Vanguard Australia head of intermediary, said the firm added the RIB following the introduction of the Portfolio Builder tool.

Related News:

“We recognise the increasingly critical role that effective technology plays in enabling advisers to deliver more efficient and scaled advice to retiring Australians,” Pope said.

“Over 260,000 Australians retire each year and face the difficult trade-offs associated with creating a sustainable retirement income stream.

“The RIB tool is purpose-built to integrate seamlessly into the advice process and provide clients greater certainty in what can be an uncertain phase of life.”

The RIB tool considered a range of investment factors which included client goals, spending glide-paths, tax implications and the Age Pension to forecast income and wealth in retirement.

“In discussions with advisers, it became apparent that existing tools were either too simplistic or overly complicated,” Pope said.

“The RIB tool has been designed to offer the right level of complexity; it is easy to use and client friendly while incorporating enough considerations to model retirement scenarios effectively.”

Instead of focusing solely on selecting assets with the yield to match a client’s spending objectives, the RIB tool allowed advisers to assess their client’s goals and risk tolerance, set asset allocation at a level that can sustainably support spending requirements and use capital returns when necessary.

“The RIB tool brings the total returns approach to life by enabling advisers to apply it simply and practically to their client’s individual circumstances,” Pope said.

“It will help advisers use both the income and capital growth elements of a portfolios to guide clients through different retirement scenarios.”

Pope said the advice landscape was not what it was five years ago and increased regulatory requirements and competing demands had challenged advisers to better streamline their operations.

“Adopting advice technology can simplify the delivery of the more complex aspects of financial planning, while at the same time help to keep costs down,” Pope said.




Recommended for you

Author

Comments

Comments

Would be good to see some road testing by financial advisors of this new Vanguard tool.

Add new comment