Powered by the fund group’s 20 CoRI Retirement Indices, the calculator helps those approaching retirement work out how much they need to save to achieve a specific annual retirement income.
Aimed at those aged 55-74, CoRI relies on real time data based on UK bond indices – interest rates, inflation expectations, mortality projections and other factors – to provide a quick and forward-looking view to ascertain an individual’s possible future retirement income.
BlackRock currently has 20 CoRI indices, one for each year an individual might turn 65 – from 2006 to 2025.
For example, someone who will turn 65 in 2019 would use the CoRI Index 2019 as the metric to calculate their retirement income.
Chip Castille, chief retirement strategist at BlackRock, said: “With continued uncertainty in financial markets, coupled with longer life expectancy, savers need a simple and reliable means to understand their retirement readiness. [We] support the choice and freedom the UK pension reforms have given to people.
“However, with this comes much greater responsibility and individuals are not tasked with an easy feat – how does someone know how much to save when they don’t know how long they are going to live?
Further, BlackRock said CoRI allowed investors to measure their existing portfolio value against their retirement goals and adjust the investment portfolio accordingly if required.
For the 55-74 age group, good planning is crucial to their future financial security.
Castille added: “We have a once-in-a-generation opportunity to change people’s attitudes – they need to understand with certainty whether their savings will provide a sufficient income to support their desired lifestyle in retirement.”
