Aon has launched a digital retirement planning tool, aimed at supporting pension scheme members with managing their retirement journey through a self-directed approach.

The consultancy said My Pension Planner would use technology to help improve the experience of pension scheme members, and support trustees and sponsors with delivering better retirement outcomes via their existing administration platforms.

My Pension Planner looks to allow users to build a retirement plan by bringing together all of their pension arrangements, including the state pension.

It includes modelling and education for in-scheme defined benefit options that enable users to see the impact of choosing to take benefits, such as pension increase exchanges and bridging options.

It also has resources to compare members’ projected income to Retirement Living Standards and the ability to identify actions to address potential shortfalls.

Users will be able to view different scenarios to show what happens if their investments perform better or worse than expected, or if they live longer than anticipated.

“With My Pension Planner we are responding to member feedback and a clear market need for digital tools that support individuals through their working life and enable them to take a holistic approach to planning for their retirement,” commented Aon associate partner, Dyfan Jones.

“My Pension Planner allows scheme members to combine all their pension and saving information into one tool that can model different retirement scenarios, run stress tests and understand the potential impact on their long-term plans.

“Compared to other areas of financial services, the pensions industry has been slower to adopt digital solutions, with many pension schemes still relying on paper-based processes and fragmented information.

“However, this solution enables members to take more effective control of their retirement by combining education, modelling and planning in a way that is both accessible and sophisticated.”

Jones added that trustees and sponsors were looking for ways to support their members and employees with navigating the increasingly complex landscape of retirement.

“With the increase in DC arrangements, low transfer activity and limited administrative resources, My Pension Planner offers a timely and effective solution for individuals to see their in-scheme benefits and build a retirement plan – all in one place,” he continued.

“Its design complements Aon’s existing digital solutions and provides schemes with a choice of tools tailored to their strategic objectives.

“It also integrates seamlessly with technology platforms for the Aon-administered schemes that currently provide members with a self-service portal and digital access to their retirement communications.

“However, My Pension Planner is also available to externally administered schemes.”

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