Retirement Adequacy

Overview

Following recent industry debate about superannuation funds providing little or no reporting on retirement benefits, we extended our suite of products. The Provisio Retirement Adequacy module enables funds to use engaging, accurate and consistent ways to help members progress toward their retirement income goals.

Using Provisio’s Retirement Adequacy module and Provisio Server, organisations now can create powerful living retirement plans that engage and educate members in retirement planning on an ongoing basis.

Best of all, Provisio Adequacy projections can be delivered consistently and efficiently across all member communications - such as online advice tools, member statements and other printed communications, and your fund’s call centre.

Limitations of Traditional Retirement Projections

Focusing on 12-month performance of super balance is often meaningless and can cause loss of members due to a bad year. Provisio’s solution allows you to engage members in actively planning for their retirement. Traditional retirement projections do not:

• Incorporate member financial advice (e.g. making additional contributions) resulting in an incomplete, inaccurate projection.
• Integrate with member websites or adviser software – with different solutions in these areas producing inconsistent results.
• Allow the member or adviser to interact with the retirement plan, to understand the long-term retirement benefit of taking action now through financial advice.
• Provide accurate, viable recommendations on how to address a shortfall, so the member can achieve their desired retirement income.
• Consider Centrelink benefits to reduce the amount of pension drawdown required during retirement.

The Provisio Living Retirement Plan Solution

The key advantages of Provisio’s living retirement plans are:

• Provides consistent projections and information through any delivery channel — such as web, phone, and print;
• Integrates the retirement plan into web-based self-service tools, so members can be continuously informed, and manage the impact of any changes in their financial situation or savings strategies;
• Recommends specific strategies to address a shortfall between projected retirement income and desired retirement income — such as delaying retirement, making additional contributions, or changing investments to achieve a desired growth rate;
• Incorporates Centrelink entitlements to reduce pension draw, extending the life of the pension throughout retirement years;
• Shows the effect of recommended financial strategies on the retirement plan, allowing the member and adviser to see “what-if” scenarios based on various strategies;
• Incorporates recommended financial advice when projecting subsequent retirement plans, so the projection includes the specifics of that advice when calculating retirement benefits (e.g. future additional contributions or changes in investments);
• Tracks progress over time by comparing the member’s desired retirement position against their current retirement savings.