This Insight will allow you to model how an annuity would affect your client's plan.
Transcript
in this video I will be walking you through the Longevity Risk Insight in Voyant.
We have a demo plan here with a couple. Go to the Insights tab, where you’ll see a new insight called Longevity Risk. This allows you to model what an annuity would look like in your client’s plan.
Click on the insight and start by reviewing the settings. For this example:
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Set the default to Withdrawal GMIB
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Start withdrawals at age 70
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Allocate 50% of their retirement accounts into a variable annuity
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Set both accounts to average risk
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Assume average market conditions
You can also model what happens if the clients live longer. Under Advanced Settings, you can adjust the fee rate, GMIB interest, and guaranteed age. Additionally, I’ll add a step-up to the GMIB every 3 years.
Once the settings are configured, click Get Started.
Looking at the results:
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The estimated estate value at the end of the plan is $4.9 million
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The estimated income from the variable annuity starting at age 70 is $6,239 per year
Clicking Details, you can see the planned withdrawals in yellow, stepping up every 3 years until around age 85.
Comparing this to the base plan, the insight results show that with Social Security and variable annuity payments, the clients can meet their basic expenses. In case of market fluctuations, a sizable guaranteed amount is included in the plan.
If you decide to implement this strategy, click Generate Plan from Results, give the plan a name, and click Create. You’ll now have a copy of the plan with this model, which you can use in client discussions about this approach.
I hope this was helpful! If you have any questions, click the client name in the top right, select Request Support, enter your question in the text box, and share client access.