So far, we’ve journeyed through the evolution of WealthSolver, from its SuperSolver roots to its powerful backend configurations, research abilities, and deep dive scenario modelling.
But as the Australian advice landscape shifts, so does the complexity of the problems we need to solve. With the Retirement Income Covenant now a central focus, and an ageing population, the conversation has moved from "how do I save?" to "how do I make it last?"
Focus shift to decumulation strategy
For years, retirement modelling was often a linear projection of an Account Based Pension (ABP). Today, best practice involves a "layered" approach to income. Clients are increasingly looking for certainty, which means advisers need to model combinations of traditional ABPs and Lifetime Income Products (LIPs).
The dedicated Retirement Income tile within WealthSolver is built specifically for this decumulation phase. It allows you to move beyond simple product comparisons and into the realm of longevity management.
Adviser best practice: Driving the journey
Provided your site is correctly configured and optimised for your business, the success of a WealthSolver Retirement Income scenario rests on the quality of your inputs. To generate meaningful outcomes that truly reflect a client's position, follow these best practice tips:
1. Audit the Client Focus data
A retirement model is only as robust as the data driving it. Accuracy in Client Focus data is non-negotiable, particularly when dealing with the complexities of the decumulation phase.
- Date of birth and gender: These data points are the bedrock of the entire journey. WealthSolver uses these to calculate not just planning horizon, but also the preservation age, pension minimums, and the specific pricing for LIPs, which are often actuarially driven.
- Comprehensive super and pension data: Verify all existing account details, including latest balances, tax-free components, and contribution history. Accurate current state data ensures accurate and relevant modelling.
- Partner details: Retirement is rarely a solo journey. For WealthSolver to consider a partner appropriately we must ensure their details are also captured correctly.
2. Define the 'retirement income goal'
This is the most critical step for any retirement scenario. Without a clearly defined retirement income goal, both in terms of how much and when, you cannot measure the effectiveness of your recommendation.
- The income benchmark: Ensure you have entered the client’s desired annual retirement income in the 'Goals' section. WealthSolver uses this specific figure as the benchmark to calculate the "Longevity Uplift", or the exact point in time where capital may no longer meet the income requirement.
3. Visualising the long game: Planning horizon and probability
One of the most powerful features of the retirement income journey is the ability to move the client conversation away from a single "life expectancy" figure and toward probability modelling.
- Master the planning horizon: Rather than simply modelling to life expectancy (where the client has a 50% chance of still being alive), use the planning horizon tools to adjust for confidence levels. You can visually demonstrate the probability of at least one member of a couple being alive at ages 95, 100, or beyond.
- Explaining longevity risk: Use the "Probability of being alive" graph to show clients the statistical reality of their planning horizon. By illustrating the 50%, 25%, and 10% chance brackets, you can help clients realise why a strategy that only lasts until age 85 may be insufficient. It turns a dry technical calculation into a compelling visual story about security.
4. Chart mastery: Explaining stochastic outcomes
The true mark of a WealthSolver power user is the ability to interpret and explain stochastic modelling. Unlike traditional deterministic models that assume a steady rate of return, stochastic modelling accounts for market volatility and sequence of returns risk.
- Moving beyond the "straight line": Use the charts in the Retirement Income workflow to show a range of potential outcomes. Instead of saying "you will have $X at age 90," you can say "based on 2,000 market simulations, there is an 80% probability your income will be sustained until age 92."
- Addressing the 'what ifs' of market volatility: By surfacing the bottom percentile of simulations, WealthSolver helps you address a client's unspoken fears about market crashes. It frames the recommendation of a guaranteed income stream not as a lack of confidence in the market, but as a strategic safety net designed to protect their lifestyle during those rare but impactful periods of significant downturn.
- Building trust through reality: Clients intuitively know the market isn't a straight line. Showing them the "cloud" of potential outcomes in the Retirement Income dashboard builds significant trust, as it proves you have stress-tested their future against the unknown.
Tools for the trade
We have developed a suite of resources on the Iress Community and Learning Centre to help you master the Retirement Income module. These are your essential bookmarks:
The bottom line: Confidence in the face of longevity
The "fear of outliving one's money" is the number one concern for most retirees. By using WealthSolver Retirement Income, you aren't just comparing products; you are providing peace of mind. You can mathematically demonstrate the value of your advice by showing a side-by-side comparison of a client's "current" path versus a "recommended" path that considers both income and longevity.
