Through its collaboration with Investfit, the Allianz Investfit illustrations show modelled projections across over 1,000 scenarios including selected income drawdown rates at a chosen level of confidence, allowing advisers to better integrate Allianz Retire+ Future Safe into retiree portfolios alongside other investments and mitigate sequence risk.
“What we know is the number one fear retirees have is running out of money,” said Jacqui Lennon, head of product and customer experience at Allianz Retire+.
“In fact, they fear that more than death. So, that is the number one risk we need to manage.”
The partnership will allow advisers to offer clients a higher degree of overall confidence when setting their individual retirement goals with a more nuanced understanding of what income they will be able to draw over their expected lifetime.
“Traditional advice is often modelled against expected average investment returns, which offer about a 50 per cent chance of achieving the projected retirement outcomes,” Ms Lennon said.
Investfit leverages stochastic modelling that runs portfolio simulations based on various inputs regarding financial position and goals — such as age, asset allocation, legacy and life expectancy — to a desired level of confidence.
“We are particularly delighted to be partnering with Allianz Retire+, an innovator in retirement funding and backed by global powerhouse Allianz,” said Investfit founder and chief executive James Claridge.
“The team at Allianz Retire+ has developed Future Safe, a solution that enables retirees to continue to gain exposure to returns linked to Australian and global shares while limiting the downside risk, which might otherwise threaten their retirement outcomes. We appreciate that Allianz Retire+ has chosen Investfit as their preferred tool to help advisers deliver great outcomes for their clients.”
