Cashflow modelling can make “complex advice” more understandable for clients.
This is what Intelliflo head of customer solutions, planning Aishling Costello said today (6 June) at the Intelliflo connected conference in London.
Costello added that cashflow modelling can turn the hardest part of being an adviser into a far easier process.
She also explained that cashflow modelling will help advisers with the roll-out of the Consumer Duty.
The several ways it helps is by showing the point of goals-based advice, proving that products are fit for purpose and the impact of charges.
Costello said he now sees more advisers offering cashflow modelling across all propositions.
This is because it shows clients if they are on track to meet the target they wish to hit for retirement or certain life goals.
And if they need to increase the amount they must save each month to get there.
Costello used to be a financial planner herself and said this helps her understand the issues and difficulties within the profession.
One aspect that Intelliflo’s cashflow modelling system has that, according to Costello, no other competitor does is that it gives clients the choice to make lifetime allowance (LTA) rules apply or not.
This is important due to the political uncertainty around the LTA rules.
In the Spring Budget (15 March), chancellor Jeremy Hunt said he would abolish the LTA on pension savings.
The next morning, Labour said if it comes to power at the next general election it will reverse the Conservatives’ decision.
Canada Life technical director Andrew Tully said that the government and the opposition were playing “political ping pong” with the pensions system.
Tully said: “We need cross party consensus on issues like this to deliver the stability required or else we seriously risk wrecking savers retirement plans.”
Due to the fact the continuation of the LTA is hard to predict, Intelliflo has given the option to either make LTA rules apply when cashflow modelling.
This way regardless of the government’s decision, Intelliflo cashflow modelling can give customers an accurate answer.
