Cashflow modelling can therefore help advisers achieve suitable, compliant client outcomes by testing the limits of what works and help put clients in an informed position about how an adviser’s recommendations are capable of achieving their goals. Regular reviews of how the plan is working in reality, versus the assumptions used, will also provide a tangible benefit to the client and form the basis of an adviser’s ongoing service proposition.
For very simple needs, it may not be necessary. But used properly it can add value for both client and adviser.
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So, if we had a referendum on whether advisers should opt in to regularly using cashflow modelling, I would confidently vote yes.
Simon Thomas is head of policy at Tenet Group
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