BNY Mellon Investment Management and Hymans Robertson are set to launch a drawdown tool for financial advisers, Money Marketing has learned.
The tool will enable advisers to create drawdown plans for clients, taking into account annual income and inflation, among other factors.
It will look at the size of the client’s pension pot alongside post code-based life expectancy data to assess the likelihood of meeting income
objectives in retirement.
Advisers will be able to simulate multiple scenarios for clients, including the selection of funds of varying risk, and adjusting duration and
income withdrawal levels.
Five of BNY Mellon IM’s risk-rated funds will be available, catering for different attitudes to risk: Newton Global Dynamic Bond, Newton Multi-Asset Diversified, Newton Multi-Asset Income, Newton Multi-Asset Balanced and Newton Multi-Asset Growth.
BNY Mellon IM UK and Ireland intermediary distribution head Fergus McCarthy says: “Advisers increasingly need to demonstrate good governance and ongoing value for money to their clients, as well as an ability to explain long and shorter-term risks from both an investment and longevity point of view.”
Hymans Robertson strategy director Stephen Birch adds: “Critically, the tool provides a more realistic forecast of life expectancy.”