Can fintech help advisors cut the savings gap?
Entrepreneur Abraham Okusanya explains in the latest episode of Financial Planning’s new In|Vest Podcast how he’s trying to help firms and planners tackle retirement distribution.
The London-based founder of Timeline — subscription software that maps out a client’s decumulation plan — picked up a seed funding round and added wealth management entrepreneur Michael Kitces to its advisory board in 2018. Timeline also integrated last year with the Morningstar ByAllAccounts aggregator and SS&C's Black Diamond Wealth Platform.
Okusanya’s firm now operates as a business-to-business service in seven countries with a team of 20 staff members. The problems with retirement distribution extend beyond the U.S., he says. “The decumulation challenge that we have is a global challenge,” Okusanya says.
“There was a paper recently by the World Economic Forum that, essentially, they looked at the gap between what people have accumulated for retirement and what they need. And, on average, they work out that there is about 10 years of shortfall in retirement savings across the developed world. In other words, as we say in England, a typical retiree or baby boomer, left to their own devices, is buggered. They need help, they need support and we’ve taken it upon ourselves to try and help solve that challenge and to use technology.”