New web tool shows retirees key differences in pension options

A new online planning tool designed to create a “simple picture of pension savers’ options” has been launched. The aim of the eValue Investment Solutions Pensions Freedom Planner is to break down complex decision making for those coming up to retirement.The firm claimed it is the “first pension freedoms tool to use scenario-based retirement income modelling rather than inaccurate ‘straight line’ forecasts”.{desktop}{/desktop}{mobile}{/mobile}Samantha Seaton, eValue managing director, said: “Any tool modelling the new pension freedoms options could claim to be innovative but Pensions Freedom Planner genuinely breaks new ground in a number of ways.“The tool enables those approaching retirement to understand and differentiate between each of the three key options of annuity, income drawdown and lump sum withdrawal.“It compares income levels and explains the different tax consequences – highlighting longevity, market performance and other risks in a simple yet very effective manner.“While not giving advice, the tool does give a projection based on the user’s personal situation, and encourages the user to seek advice at appropriate points. It offers a cost-effective way for advisers and their clients to make informed choices about the options open to them in the wake of pension freedoms.”She said the tool gave retirees a chance to understand the likely outcome of their retirement choices.She said: “People need to see a meaningful and realistic outcome that is personalised for their circumstances. Without it, they will at best have to guess what the right option is for them.“At worst they could make decisions based on biased or flawed forecasts leading to an unexpected and horrendous situation of no income at some point in retirement.”

New web tool shows retirees key differences in pension options

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