Income Discovery: AI-Powered Decumulation Platform

Manish Malhotra, Founder, President and CEO

For retirees, knowledge of decumulation of their retirement assets and a safe amount for them to spend is a boon. However, decumulation in itself is complex, and there is a lack of understanding of how much to save every day and when to buy what from the stores. Retirees either spend too much, in the wrong order across their sources and end up paying a lot more taxes, risking running out of money. Or they under-spend for fear of running out of money and live in induced poverty. Behavioral biases cause retirees to not appropriately use strategies for using their lifetime income sources such as Social Security, pensions and annuities. Still, companies like Income Discovery have built an AI-powered platform to help retirees make decisions that enable them to live a “Full & Rich Retirement”.

Established in 2010, Income Discovery is dedicated to making decumulation more straightforward for retirees. The company aims to analytically answer all the critical questions like the safe amount of retirement income that a retiree can spend annually, and how to source the cash.

In partnership with financial institutions, we want to provide retirees with a personalized strategy that aims to maximize their paycheck in retirement

"We want to provide retirees a personalized strategy that maximizes their paycheck in retirement," says Manish Malhotra, Founder, President and CEO. "Our AI engine, AIDA, combs through thousands of strategic options to determine a personalized, optimal retirement income plan encompassing Social Security, pension, annuity and asset allocation, and then runs the plan on auto-pilot generating disbursal instructions for the client’s paycheck in retirement."

Income Discovery’s platform contains three modules: Safe Income Portal, Income Planning 2.0, and Paycheck. All are powered by AIDA. Developed in partnership with large enterprise, these modules have already served over 106,000 retirees with $80 billion in assets.

Safe Income Portal is a digital module used for driving engagement and delivering self-serve personalized retirement income advice in 401 (k) retirement plans. It can be used for lead generation of prospective retirees using a digital campaign, or showing a banking client the value of engaging for decumulation advice.
Income Planning 2.0 empowers a financial advisor to build a tax-optimal detailed strategy for sourcing the cash through one-click. It is a dramatic improvement for the industry. Advisors currently use an ineffective trial-anderror approach in a financial planning tool. AIDA eliminates the trailand- error with a comprehensive optimization through one-click.

Once a strategy has been selected by the retiree, the platform also takes care of cash generation by providing the retiree disbursal instructions for planned and unplanned expenses.

"The paycheck capability, which is the source of instructions across multiple accounts, is totally brand new to the industry," says Malhotra.

Income Discovery’s platform can be white labeled, or AIDA can be used through an API. AIDA can be customized and configured with a firm’s products and methodology.

The decumulation market is huge and under-served - 56 million near-retirees and retirees with $15 trillion of savings and $8 trillion of home equity; 60% of them have no advisory relationship (as per LIMRAs 2019 Fact Back on Retirement Income). The industry revenue from serving the decumulation needs are projected to hundreds of billions of dollars every year. Income Discovery hopes to empower financial institutions and advisors to service their share of $23 trillion of assets.