Moneyhub, the market-leading Open Finance data, intelligence, and payments platform, has launched a new “Lifestyle Retirement Modeller” which shows people how much income their pension will provide in old age and encourages them to start saving now.
This feature is available to Moneyhub enterprise clients, who can customise it to their own needs.
Currently, many British people are failing to pay attention to their pensions, with a survey by the Financial Conduct Authority (FCA) finding that just 12% of women and 26% of men are “highly engaged” with their pension, whilst 31% do not even know the “approximate size” of their retirement savings pot.
The new Modeller is designed to tackle this problem. It uses artificial intelligence to carry out a holistic analysis of users’ current cash flows and then uses this information to predict the lifestyle they will have after retiring from work.
This future projection can then be the basis for making changes to saving and spending habits to lay the foundations for better financial wellbeing later in life. It also uses “goal-seeking” algorithms which present options available to the individual which will allow them to achieve their desired outcome.
Moneyhub is the first and only platform to apply the power of Open Finance to the retirement market and improve engagement with pensions.
During pre-release testing, the Lifestyle Retirement Modeller was shown to dramatically increase pension engagement, transforming people’s understanding of their current retirement trajectory and showing what they can do to improve the situation.
By showing day-to-day banking activities alongside long-term savings and investments, people can compare their lifestyle today against their future financial situation and gain an understanding of the positive long-term consequences of good decisions.
The Moneyhub Lifestyle Retirement Modeller can be coupled with nudge technology and the automated sweeping of cash. The Modeller is designed to trigger action and engagement, motivating people to pay more attention to their pensions, as well as encouraging them to make payments and save larger sums of money for retirement.
Dan Scholey, Moneyhub Chief Operating Officer, said: “Pensions are one of the most important and impactful financial aspects of people’s lives – yet they often receive the least attention.
“We know that younger people find it very difficult to plan for retirement, which can seem a long way off.
“By showing people the level of comfort – or discomfort – they can expect after stopping work, Moneyhub can encourage them to make positive financial decisions which have life-changing benefits.”
