Socius Technologies has launched a new retirement income platform, aimed at pension providers, insurers, wealth managers and advisers.
The platform aims to provide dynamic retirement solutions, that combine income drawdown and annuities to help meet individual retirement goals.
The technology will take into account what an individual needs for day to day living expenses, plus the discretionary income they’d like to take, alongside any legacy they want to leave – while also factoring in circumstances relating to age, assets, other income and attitudes to risk.
The platform, known as Spero (systemic platform for enhanced retirement options) has been designed in response to changes in the pension landscape, in the UK as well as in Europe, US and Australia.
Socius Technologies says that recent academic research and market commentary have highlighted the benefits of a static combination of income drawdown and annuity purchase. It also points out that the latest financial planning software aims to illustrate the chance of running out of money, based on the withdrawal rate and the current portfolio. But there are currently no products or services to help guide retirees and their advisers on how they might dynamically combine income drawdown and annuities to meet their retirement income goals.
The Spero platform aims to fill this gap by generating a ‘dynamic’ strategy that determines how each investor’s portfolio and the income they receive must change over time. The allocation and income they receive are adjusted in response to changing market conditions to meet their retirement income and legacy goals, while ensuring they have sufficient income to provide for their needs.
Providers can use the Socius personal account management software to implement the strategy. The account management software can integrate with a provider’s existing systems, generating and aggregating trade instructions and allocating executed deals across individual accounts.
Socius Technologies CEO David Macdonald says: “We are delighted to bring this new innovation to the market and look forward to working with providers to deliver enhanced retirement outcomes for individuals.”
Key features of the new platform:
- Provides pre-, at- and post-retirement glide paths optimising individual retirement outcomes
- Gives personal maximum sustainable income withdrawal
- Provides strategies to help investors achieve their retirement income goals while protecting critical income requirements
- Eliminates the opportunity cost of over-cautious withdrawal rates from income drawdown
- Mitigates sequencing risk and allows investors to benefit from equity market growth
- Retirement income solutions for annuity and non-annuity providers
- Socius account management software runs Spero process across hundreds of thousands of accounts, generating aggregate order instructions for internal and external consumption
- Ability to integrate with existing administration platforms to provide augmented capabilities and avoid expensive re-platforming projects
- Front-end user interface for adviser and clients or access to a REST API to integrate with a provider’s existing front-end interfaces