• October
  • 2023

Charting the Golden Years: The Role of Financial Analytics in the Evolution of Retirement Planning

A Glimpse into The Future of Retirement Planning

The fear of the unknown is among the most prevalent human experiences, and there is a good reason why retirement planning is often associated with this feeling.

The global pandemic is over, but it created financial anxieties beyond the direct impact. The recent global survey by Deloitte indicated that consumer savings worldwide took a hit, and there is a growing demand for guarantees, advice and transparency regarding long-term savings. Besides, the survey results reveal an increasing interest towards digital financial services, including retirement planning.

The fear of the unknown does not only stem from disruptive global events such as the recent pandemic, the ongoing wars or climate change. There are many challenges to overcome when charting your golden horizon. Traditional retirement planning methods are linked to employment, involve physical appointments with financial advisors, or simplified digital services that might not precisely cater to individual needs. With increasing life expectancy, the shrinking population in the OECD (Organisation for Economic Co-operation and Development) and the increasing prevalence of self-employment, these methods are no longer sufficient. So how do we provide tailored guidance to everyone, ensuring that they make the most of their golden years?

Leveraging technology to scale the services provided by financial institutions can help clients alleviate their anxiety about pensions. At Kidbrooke®, we provide one of the core ingredients of this technology, the financial simulation engine. Our solution, OutRank®, creates an individual balance sheet-level representation of a clients’ personal economy and brings it to the future according to your financial institutions’ outlooks on future economic development. Using this technology, you can build high-quality financial experiences that bring clarity to retirement planning.

With such tools, we can envision a future where every pension plan is a personalised roadmap crafted with precision and attention to detail and not a one-size-fits-all solution.

Imagine being able to glimpse into the future – to see the value of your retirement planning savings, to understand how your current financial choices influence that distant horizon. Robust simulation tools make this not just possible but a reality, turning abstract numbers into tangible visions of the future.

Imagine if you could reach, check, update and evaluate your savings any time, through any means – digitally or physically and receive the same quality of service. This is what we mean when we talk about delivering consistent omni-channel services. With a financial simulation engine like Kidbrooke’s OutRank®, you will ensure that whether your client consults a human advisor or navigates a digital platform, the quality of advice remains consistent.

Finally, retirement planning isn't just about saving; it's also about spending wisely. Sophisticated financial analytics engines, like OutRank®, can guide individuals on how to responsibly draw down their pensions, ensuring the longevity of funds and promoting sustained investment even post-retirement.

But at the heart of this transformation is the assurance of quality, trust, the core value that financial institutions provide. That is why we made sure our financial analytics suite consider retirement-specific factors like long-term salary prediction, tax implications and individual risk profiles. This ensures that the advice generated isn't just fast and scalable but also reliable.

We have helped our customers in the Nordics and the Middle East to create retirement planning journeys. The earliest was released in 2020, and since then, it has yielded interesting learnings. First, our customer discovered that they could provide significantly more advice for the same cost. Second, they discovered that digital journeys also activated other channels the retirement advice provider usually used. Many customers learned about the service and gauged their numbers online to continue the experience over the phone or in a physical meeting. Third, digital pensions unlock great potential for co-creation and continuous improvement of services. This customer updated their regulated advice journey multiple times since the first release – all based on customer feedback. For instance, their digital journey allows customers to plan their retirement in multiple saving periods if they want to retire early – and also allows them to choose the assistance they need – navigating between regulated advice, guidance, or a DIY investment service.

As we stand on the brink of this new era in retirement planning, it's clear that the future isn't just about saving more, but about planning better. With tools like OutRank® paving the way, every individual, regardless of their financial acumen, can navigate the complex seas of retirement planning with confidence.

As we look ahead, let's envision a world where retirement isn't just a phase of life but a well-curated, well-lived journey.

Similar Articles

Exploring ALM in Life Insurance: Strategy, Risks, and Innovations

  • November
  • 2023
In this interview, Hans Sterte, a seasoned economist, and Senior Partner at Hous

Beyond End-of-Service Gratuities: The Digital Dawn of Pension Planning in the UAE

  • October
  • 2023
The financial landscape in the UAE is witnessing a dynamic shift, predominantly

Bridging Gaps in Consumer Duty

  • September
  • 2023
The purpose of the UK’s latest regulatory update goes beyond additional reportin