Most advice firms use risk profiling tools but recognise limitations

The new report by both firms - ‘Guarding Financial Futures' - showed that advisers score risk profiling tools an average of 7.6 out of 10 for effectiveness. This shows that they recognise the limitations that risk profiling tools have today to cover the complexity of risks in retirement, the report noted. The report also found that 76% of advisers use cashflow modelling tools by visualising scenarios especially with their at-retirement or in-retirement clients, but only 30% use scenario planning tools such as stochastic modelling. Meanwhile, sole traders are most likely to take a m...