Financial Planning software provider Prestwood has unveiled a consumer cashflow modelling tool.

The company says the new tool is aimed at consumers who cannot afford Financial Planning or are not yet aware of the benefits it offers.

The provider of Truth software to Financial Planners believes the new simplified cashflow tool - truthaboutmoney.co.uk (TAM) – will encourage more consumers to plan their finances better.

The initial roll out is direct to consumers but next month Prestwood will launch a version for Financial Planners who want to link their website to the free consumer website.  After consumers have entered their details, they can allow planners to import their fact find details straight into the comprehensive planner version of Truth.

Consumers can use the tool to evaluate the impact of key changes to their finances such as spending less, retiring later or increasing pension contributions.

Ritchie Walton, managing director of Prestwood, said: “Truth Financial Planners know that once a client sees their own lifelong cashflow chart, they suddenly have that ‘lightbulb moment’ and they grasp the point of real financial planning.

“Until that point, even if they have bought financial products, they don’t know if they will ever achieve their desired lifestyle - when their money will run out or how much they really can spend in retirement.

“We are launching a free cashflow modelling tool for consumers that is a simple online service allowing consumers who don’t yet have planners, to see what their future financial life might look like.”

“There is no automated advice, but consumers will be directed to the Money Advice Service and Financial Planners for further planning advice.”

“90% of adults don’t pay for advice according to recent research by PIMFA.  Truth About Money is free and a crucial step towards bridging the education and advice gaps, thus increasing the number of people eventually seeking proper Financial Planning advice,” said Mr Walton.