Provides Advisors with Technology to Create Plans for Spending Retirement Savings, Generating Sustainable Lifetime Income
What makes retirement planning so difficult for advisors is the need to simultaneously manage the ups and downs of the market without knowing how long their client is going to live. iRetire gives advisors a new way to help navigate these uncertainties by providing them with the tools to engage in a relatable, repeatable conversation that is sophisticated enough to help manage the problem and simple enough to use with clients.
“Helping investors generate and maintain sustainable retirement income has been referred to as the ‘silver bullet’ of retirement planning, and a truly effective solution has eluded advisors and investors for decades,” said Frank Porcelli, Chairman of BlackRock’s U.S. Wealth Advisory business. “iRetire empowers advisors to help clients manage their journey with the help of a powerful, integrated approach that not only helps clients accumulate retirement savings, but also deploy those assets throughout retirement.”
Taking Clients To and Through Retirement
iRetire is an end-to-end retirement planning framework that financial advisors can use to take clients to and through retirement. It provides advisors and their clients with a powerful and sophisticated institutional asset management process that is backed by Aladdin®, the same industry leading, global multi-asset technology platform that powers risk and portfolio management at many of the world’s leading institutions, including BlackRock, and the methodology that powers the firm’s innovative series of retirement income indexes, CoRI®.
Since launching in 2015, iRetire today is available to more than 70,000 advisors nationwide, delivering a suite of capabilities that, in the years leading up to a client’s retirement, allow advisors to engage in a relatable savings and investing discussion focused on saving toward a retirement income goal. With the addition of iRetire’s decumulation capability, an advisor can help manage their client’s spending phase in retirement as well. Once the client reaches retirement age, an advisor can help them understand how much estimated sustainable income they could spend from their portfolio each year during retirement to help meet their goals.
“iRetire was built from the ground up to provide advisors with advanced technology and established institutional investment techniques to better navigate their clients retirement journey,” said Chip Castille, BlackRock’s Chief Retirement Strategist. “By seeking to manage market and longevity risk together, and focusing on specific retirement outcomes, iRetire provides a means for investors to gain clarity and confidence about the path ahead. We hope this new approach can help investors embrace increased longevity instead of worrying about how to pay for it.”
Some clients may have immediate needs or retirement spending expectations that an advisor may want to address, so iRetire allows advisors to quickly and easily adjust portfolios or add inputs, in real-time, to illustrate the potential impact to estimated sustainable spending that may result from making a change. This flexibility allows advisors to be responsive to specific client preferences, while reinforcing straightforward and transparent discussions about the spending a client might achieve in retirement.
“The need for financial advice is greater than ever as savers face global and geopolitical uncertainty, prolonged low interest rates, and longer lifespans. At the same time, the wealth management industry is undergoing rapid transformation as a result of changing demographics, new regulations and technological advances,” Porcelli said. “iRetire is designed to powerfully respond to all of these forces, leveraging BlackRock’s industry-leading technology and insights to enable advisors to demonstrate their value to clients by facilitating a deeper dialogue.”
BlackRock launched iRetire® as part of its commitment to help reframe the retirement challenge, providing new approaches using the firm’s proprietary technology solutions and support. iRetire’s innovative approach to retirement planning is available to more than 70,000 financial advisors across the U.S.
iRetire empowers advisors with sophisticated institutional data, risk engines and portfolio construction tools, all displayed on an interface designed for advisors to use with their clients. The platform helps advisors guide their clients to and through retirement. It shows clients how much income their current savings could generate annually in retirement and how changes in behavior (e.g., working longer, saving more, spending less, changing their investment strategy) could help them stay on track toward achieving their income goals. With that analysis in hand, an advisor can use iRetire to offer for client consideration a series of model portfolios designed for effective allocation of retirement assets, either to help close a prospective income gap or to stay on track toward a retirement income goal. Once an investor successfully reaches retirement, advisors can use iRetire to help navigate their client’s spending goals through retirement. This end-to-end comprehensive approach to creating a sustainable retirement income plan can help advisors build client confidence, deepen relationships and systematically grow and retain business.
BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At March 31, 2017, BlackRock’s AUM was $5.4 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of March 31, 2017, the firm had approximately 13,000 employees in more than 30 countries and a major presence in global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa.