Advisers favour modelling tools over 4% rule for 'safe' income drawdown

Figures from Aegon and NextWealth showed 38% of advisers now use modelling tools, an increase from 28% last year. The provider said such tools, like cash flow modellers, had become the preferred method to work out the sustainability of retirement income. Advisers still using the fixed-rate method for withdrawals had fallen from 41% to 37% over the last year and, where it was used, there was an increase in using a rate of less than 4%  - a third using a lower rate (32%) compared to 21% a year ago. Advisers said modelling tools had become more valuable than ever during the pandemic as t...