Inflation is a top concern for consumers and advisors alike, and that’s why our team prioritized adding an inflation stress test to our product offering. Our advisor-led team understands the concerns of your retired clients and how the right financial planning software can make addressing them easier. Read on to see how we've updated our software to help you quickly and easily address client needs and demonstrate the value of your financial advice. Let's take a closer look at some recent software updates.
Inflation Stress Test
With high inflation dominating headlines and impacting the cost of everything from gas to groceries, many people are worried about the impact inflation could have on their retirement. In fact, according to the BMO Real Financial Progress Index, 25% of Americans are delaying their retirement due to inflation. You can show clients how their retirement strategy will be affected by inflation with the new inflation stress test in Income InSight®.
The inflation stress test is indicated by an upwards-pointing arrow icon at the top of the results page. The icon becomes red if the retirement strategy cannot withstand 10 years of high inflation. A green icon indicates that inflation will not derail the strategy. The software assumes 7.6% inflation per year for the first 10 years of the plan, requiring the same increases to after-tax income to maintain the living standard. This inflation rate is equivalent to the annual geometric average inflation from 1975-1984.
Updates Surrounding the New Social Security Trustees Report
It's no secret that the Social Security program funding isn't on solid footing, and your clients are worried about the program's future. A recent Goldman Sachs survey indicated that receiving reduced Social Security benefits is among the top 5 concerns for retirees. To help you address potential benefit cuts with your clients, we updated our software to reflect the Old Age and Survivors Insurance (OASI) funding depletion date outlined in the latest Social Security Trustees report. Benefit cut projections in Social Security Timing®, as well as the benefit cut stress test in Income InSight, now default to a 23% cut in 2034. This feature is customizable, and you can change the percentage and date.
Customizable Asset Classes
Clients understandably want a clear picture of the current state of their investments, especially during market volatility. With the recent software update, you can now customize asset classes in Income InSight to allow for flexibility in determining account returns–including down markets and recovery periods.
This update includes a better way to create and display advisor portfolios.
It’s easier than ever to globally update accounts when you delete an active asset class or portfolio.
Financial Planning Software that Does the Complicated Calculations for You
At Covisum, we understand that being a financial advisor is hard, and we're here to make it easier. Our software helps you optimize your clients' retirement income strategies and communicate the value of your advice. Give these new features a try and see the value you can add to your practice with a 10-day, risk-free trial of Income InSight today. Our team will even help you get started and support you along the way.