Aon has launched a new digital retirement planning tool for scheme members.
Called My Pension Planner, the tool enables members to combine information on all pensions and savings plans, including DB entitlements and the state pension, and model different retirement scenarios.
Aon says this was developed to help trustees and sponsors support members with retirement decisions, with the aim of delivering better outcomes for individuals.
The functionality includes modelling and education tools for in-scheme DB options, enabling users to see the impact of taking benefits, such as pension increase exchanges and bridging pension options.
There are also educational resources which compare a member’s projected income to Retirement Living Standards, which will identify actions to help address shortfalls.
The modelling tools also show what will happen to projected income levels if investments perform better or worse than expected, or if members live longer than anticipated.
My Pension Planner integrates with platforms that support Aon-administrated schemes and offer self-service portals and digital access to retirement communications. It is also available to externally administered schemes.
However this is primarily a self-direction tool. It will not provide a recommendations or advice, or express an opinion on the suitability of one particular option over another.
Aon associate partner Dyfan Jones says the tool was developed in response to member feedback and a “clear market need” for digital planning tools that support pension savers throughout their working lives.
He says My Pension Planner takes a more holistic approach to retirement planning. “This allows members to combine all their pension and saving information into one tool that can model different retirement scenarios, run stress tests and understand the potential impact on their long-term plans.”
He adds: “Compared to other areas of financial services, the pensions industry has been slower to adopt digital solutions, with many pension schemes still relying on paper-based processes and fragmented information. This solution enables members to take control of their retirement by combining education, modelling and planning in a way that is both accessible and sophisticated.”
He adds: “Trustees and sponsors are seeking ways to help their members and employees to navigate the increasingly complex landscape of retirement. With the increase in DC arrangements, low transfer activity and limited administrative resources, My Pension Planner offers an effective solution for individuals to see their in-scheme benefits and build a retirement plan – all in one place.
“Its design complements Aon’s existing digital solutions and provides schemes with a choice of tools tailored to their strategic objectives.”