The innovation allows advisers to assess sustainable withdrawal rates from a retirement portfolio, according to Mr Okusanya. Safe withdrawal rates from retirement portfolios have been a major talking point in the Financial Planning community for some time.
Mr Okusanya, director at FinalytiQ Limited, an investment, pension and platform research consultancy, announced the app this morning by newsletter. Currently, the app is at beta stage, being tested by planners.
It will cost £49 per month per firm for businesses with 1 adviser for up to 100 clients or £79 per month per firm for those with 2 to 5 advisers – for unlimited clients.
Former London IFP branch chairman Mr Okusanya said: “Today, I am totally pumped to unveil our new sustainable withdrawal rate app.
“With Timeline app, Financial Planners can calculate sustainable withdrawal rates from a retirement portfolio. You can test various asset allocation models, see the impact of fees and help your clients visualise likely outcomes at every single stage of retirement.
"Timeline app isn’t a crystal ball. It uses extensive academic research, historical returns and mortality data to assess how a retirement strategy might fare under various market conditions.”
He said: “Retirement researchers have identified several dynamic withdrawal strategies that are more likely to lasts a lifetime. From Bengen’s baseline approach, Guyton’s guardrail strategies to Kitces ratcheting rules.
“Timeline app enables you to see how any one of these sustainable withdrawal strategies aligns with your client’s needs.
“Using ONS cohort longevity projections, the app shows you the chances of till any age up to 125! And the odds of your portfolio lasting as long as you do.”