Stochastic rather than deterministic modelling

Traditional projection tools are deterministic. They allocate a constant rate of return based on a set risk profile, but don’t convey the downside of risk or allow for market fluctuations or the impact of time horizons.

SuperEd’s Retirement Income Forecast is stochastic, better tailoring to the individual’s circumstance by taking into account investment volatility and timeframe. Our tool returns a projected range of likely retirement income outcomes rather than an absolute.

 Example of a range projection

This approach delivers a range of likely outcomes showing a best, worst and most likely scenario for the individual. This empowers them to seek results more in line with their appetite for risk and preparing them for likely market downturns.