Dunstan Thomas, a technology firm, recently called for the creation of an artificial intelligence-powered pension dashboard. The desired dashboard can be instructed to compute the ideal day to drawdown the monthly pension payment or purchase annuities at a suitable price.
Adrian Boulding, Dunstan Thomas’ director of retirement, is convinced that the pension dashboard would be useful for retired individuals as it would for those in the process of building their pension pots. Set to be unveiled in 2019, the pension dashboard is propelled by the need to create technology that allows savers to view all their retirement pots in a single place simultaneously. In turn, the move would not only provide them better awareness of their assets but also show them how to plan early for their retirement.
According to Boulding’s statement to FTAdviser, the pension dashboard would mostly suit individuals in the “modern retirement” bracket. In essence, this means those people that are expected to purchase retirement income but cannot do so all at once.
Adrain Boulding added that although such individuals are embarking on their retirement journey with income drawdown, they, later on, switch to a more secure income product such as an annuity. He also argued that the annuity purchase creates an opportunity for some artificial intelligence (AI) robot device to monitor the dashboard for the ideal point to acquire the next share of an annuity. In addition, Boulding said that the device would be looking out for two things including the annuity market to evaluate the movement of rates and the performance of your drawdown funds, whereby it would probably be a perfect time to do so when the funds are high.
The AI robo-device can detect the day when both conditions would be met. By doing so, it would be implementing the phased purchase strategy as per the agreement between the client and the adviser.
According to Boulding, the AI device could also be useful in the income drawdown area, especially in helping individuals to manage their monthly withdraw levels. He added that it would tell you the sustainable and sensible level of income to take home this month, by looking at your current level of funds.
Since taking over the AI-driven pension dashboard project from HM Treasury, the Department for Work and Pensions (DWP) has been concentrating a lot on users as well as looking at what other nations have achieved in this area. Also, industry professionals have advised the government to phase-in the project and make it accessible first-hand to retired people. On the other hand, DWP is expected to publish a study relating to the dashboard this spring.
Boulding forecasted the development of AI-powered tools to be done as early as 2020. As such, he argued that 2019 would be the year for early adopters while 2021 would usher in the legislation. Since a new law would give schemes ample time to comply, a fully compulsory pension dashboard can be expected in five years. However, Boulding argued that if an early version of this dashboard is unveiled in 2019, there would be no reason why platforms, schemes, and providers may not be in a position to connect via it by 2020.