Lincoln has branded the tool Retirement Income Illustratorto support an enhanced participant experience in its retirement plan services business. Lincoln and Fiserv partnered on the design and desired user experience, Ken Solon, head of shared services and information technology for Lincoln Financial Group, told PLANADVISER.
“Fiserv developed the application package and worked with Lincoln to make sure the application could be integrated successfully into Lincoln’s technology environment,” Solon said.
“Most tools on the market today rely on a straight-line market calculation, maybe overlaying it with some other scenario like Monte Carlo,” Hilary Fiorella, vice president of business development and consulting services for investment services at Fiserv, told PLANADVISER.
Retirement Income Illustrator stands out from other retirement visualization tools because it considers risk tolerance, Fiorella said. “The adviser can show how various products can reduce product risk to get an expected outcome.”
Solon called Retirement Income Illustrator “a flexible solution that combines compelling visualizations of a client’s retirement income outlook with a robust analytical engine.”
Since Fiserv works with financial services professionals, the tool was designed with the professional adviser in mind. The tool lends itself well to collaboration with an investor but, Fiorella says, it really needs an adviser to walk the investor through it.
The tool was designed to better support communication and collaboration between financial professionals and clients, Solon explained. “The tool helps clients grasp retirement income concepts and understand how different strategies can help them increase the likelihood of meeting their retirement income goals,” he said.
The Fiserv technology provides Lincoln’s financial professionals with analytical capabilities designed to help improve and better assess an investor’s retirement income outlook. Clients can visualize different savings and investment strategies that can better help them improve cash flow at the time of retirement.
Monte Carlo simulations demonstrate retirement plans in favorable and unfavorable market conditions, allowing financial professionals to plan best- and worst-case scenarios. Investors can visualize how market volatility can affect their retirement picture through interactive, intuitive and graphical illustrations.
The retirement income capabilities deployed by Lincoln as Retirement Income Illustrator are designed to help advisers present retirement spending requirements and distribution alternatives, overlaying risk events such as withdrawal, longevity, survivor needs and health care to ensure investors’ greatest challenges are met throughout their planning and retirement phases. The retirement income capabilities can be easily adapted to different practice models. Retirement Illustrator can be deployed across an enterprise or purchased as individual licenses by financial professionals.
Fiserv is a provider of financial services technology solutions based in Brookfield, Wisconsin.
Lincoln Financial Group is in Philadelphia.