26 September 2018 13:30
Using the data collected by Manulife since its inception and those found in Statistics Canada, Manulife Investments has created a platform for retirement planning based on the goals of the clients. The tool will be available to all advisors as of Monday 1st October.
“This program is a key element of our strategy of digital transformation, it is all-new as how to proceed. The tool is based on two elements : the data analysis and our expertise in terms of quantitative management, ” says Charles-Antoine Laplante, chief strategy officer of business development for the asset management division and the heritage of Manulife Canada.
Assess the spending habits and income
Intended for people approaching retirement, the tool uses age, income, health factors and the geographic position to assess the spending habits of the customer and the income they will need in retirement.
The tool sets out the average expenditure for recreation, medication and health care, among other things, for persons with a profile similar to that of the client for the same geographical location. There is also indicated how these people with similar profile have accumulated on average at the same stage of life as the client.
After entering the information, the platform has a time line where the advisor and customer can see the expenditures and the revenues projected. If the retirement goal is not reached, the tool provides alternatives : either to postpone the retirement age, increasing contributions, or a mixture of these.
The projected revenues include payments from the Canada pension Plan, Quebec pension Plan and old age Security, and are net of fees.
Investment strategy based on the liabilities
The platform uses an investment strategy based on liabilities, a strategy usually institutional Manulife puts at the disposal of consumers. It attempts to align the needs of the client in terms of income with the income of its investments, says the company.
The tool place the savings of the client in mutual funds domestic managed by Manulife asset Management and Manulife Investments, exchange-traded funds of third parties.
“We are able to design a retirement plan quite developed in just a few clicks with some pretty impressive results compared to techniques of retirement planning more traditional,” said Mr. Laplante.