Clients still want certainty
With more people staying invested during retirement and drawing down income as required, clients are looking for certainty their income will last as long as needed. Many are looking for a middle ground between the flexibility and access offered by drawdown, and the certainty of an annuity. This has led to a demand for innovation from drawdown investment strategies that mitigate the different risks faced by investors, such as sequence risk and inflation.
Nobody can predict volatility, and it’s a normal part of investing. Although it cannot be predicted, it is possible to respond to it, reducing the impact for customers taking withdrawals, especially in the early years of retirement. Any investment strategy you recommend should balance exposure to growth assets whilst offering some ability to manage the impact of potentially damaging market volatility and at a cost acceptable to the client.
It’s clear the changing pattern of retirement shown by the retirement wave poses both issues and opportunities for retirement planning. Adaptable, innovative and flexible products can go some way to help meet the changing needs and circumstances of clients both approaching and during retirement.
Here’s how Retirement Account from Scottish Widows can help deliver a more flexible retirement
Retirement Account can support your clients’ changing needs to and through retirement, with a range of flexible investment, income and charging options.
Our low cost multi-asset Retirement Portfolio Funds are designed to manage significant volatility to help your client’s drawdown pension pot last longer using an innovative Dynamic Volatility Management process (DVM).
Our automated Drip-feed Drawdown functionality can help you achieve a tax-efficient and sustainable retirement income for your clients, by giving them greater control over the level of taxable income they receive in retirement, and can also save you time through online automation.
We’ve no additional service charge for drawdown, which means less barriers to your clients taking their income and reinforces to them that Retirement Account is a plan for life.
For more insight, case studies and expert guidance on retirement planning, visit scottishwidows.co.uk/takeacloserlook.
By Iain Petrie, Senior Manager - Retirement Propositions, Scottish Widows
