Retirement Planning Tools

The new pension reforms have allowed full access to your retirement funds. It’s now your responsibility to make this last, so where do you start? Don’t worry, there have been a flurry of pension provider tools created to assist you in this very task.

Here are some of the ones we found useful:

CoRI

This one from Blackrock has been used in the US for a while and is more a pre-retirement tool. It aims to show you how much you need to save now, to receive £1 of income in retirement.

CoRI uses live UK Bond indicies, current interest rates, inflation predictions and mortality projections in its calculators.

Other pre-retirement tools we like are RetireReady from Aegon and The MoneyAdviceService (which does pretty much the same as Aegon but with less frills).

Retirement Budgeting Calculator

This tool from Fidelity provides a visually appealing way to calculate your income and expenditure. It’s thorough enough to break down all the potential expenditure areas together with taking in your estimated retirement income. It then presents you with a summary of your income and outgoings so you can analyses your cash flow.

Fidelity also have a Retirement Income Estimator which providers an idea of the income potential from an annuity, drawdown or a combination of both.

Life Expectancy Calculator

Whilst you’re planning how much income you wish to take, it’s important to consider how long you’ll need it for. This calculator from Aviva uses mortality rates to guesstimate your average life expectancy.

Depending on your date of birth, it may also ask further lifestyle questions to give a more accurate forecast.

Expected Returns on drawdown according to risk profile

This calculator from consumer site Which, attempts to predict returns based on your input risk score (Cautious, Moderate, Adventurous). It shows how long a drawdown plan could last given the income taken and based on typical return of a mixture of asset classes.