Vanguard launches Retirement Income Builder tool

vanguard/retirement/retirement-income/Rebecca-Pope/

18 March 2021
| By Chris Dastoor |
image
image image
expand image

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.

“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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

4 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months ago

Commonwealth Bank has formally dropped to zero advisers following LGT Crestone’s acquisition of its advice arm – some six years on from the Hayne royal commission. ...

3 weeks 4 days ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
3