After several months of beta-testing with advisors, BlackRock is introducing iRetire, a software platform designed to enable advisors to refocus client conversations from asset management issues to retirement income in a fast, seamless manner.

Specifically, the various tools within the iRetire system enables advisors to take a handful of variables that can illuminate the retirement income gap that many pre-retirees are confronting and show them what they need to do to close the gap.

BlackRock utilized its proprietary technology and systems, including its cost of retirement income (CoRI) indexes and its risk-analytics platform, Aladdin. The giant investment management company believes iRetire is the first end-to-end asset management framework that will allow financial advisors to substitute the traditional retirement nest egg concept and address retirement income.

“In just minutes, a financial advisor using iRetire can work with a client to see how much income their retirement savings will generate in retirement and give them specific steps they can take to improve their income prospects,” says Rob Kapito, president of BlackRock. “This makes what has traditionally been a very difficult conversation manageable and provides advisors with a clear, actionable plan.”

The adoption rates of advisors who have tested the iRetire system with clients is exceeding expectations, according to Chip Castille, managing director and chief retirement strategist at BlackRock.

What the system simplifies is often the initial retirement conversation advisors have with prospects who frequently make two faulty assumptions--underestimating their longevity and overestimating how long their retirement savings will last. As Castille explains, the system permits advisors to input a few pieces of information, including client’s age, current retirement savings and desired annual retirement income, to determine how much income they can expect.

As advisors know, this conversation can be a rude awakening for many prospects. To correct the course they are on, advisors can change a number of levers, including retirement age, savings rates and portfolio risk, allowing clients to see the impact of saving more or working longer.

Castille adds that the CoRI indexes are designed to take longevity risk off the table, while iRetire offers a range of suggested portfolios that can help clients close the probable income gap or remain on course towards their objective. Ideally, the variance in the range of potential retirement income levels should narrow as the individual approaches retirement.

Recent research conducted by BlackRock of baby boomers aged 55 to 65 found they want to have $45,500 in annual retirement income. However, the nest eggs they have accumulated--about $132,000 on average--will generate only $9,129 a year, according to the CoRI indexes.