• Around 27% of people live in care homes for more than three years*.
• People have a 55% chance of living for the first year after a care-home admission, increasing to nearly 70% for the second year and declining in subsequent years*.
• Approximately 30% of people use some form of local-authority-funded social care in the last year of life*.
Source: Age UK, Later Life in the UK, January 2018.
Source: Scottish Widows, 2018.
3. The wave: As unretirement becomes more popular – with people moving in and out of work and receiving inheritances – clients’ income needs will vary considerably over the course of their retirement.
Source: Scottish Widows, 2018.
What does this mean for you and your clients?
Regardless of where your clients might fit on an income-needs graph or curve, it’s important that:
• The vehicle chosen to facilitate a client’s retirement income should be flexible enough to adapt to their changing needs and tax circumstances, and offer the full range of retirement-freedoms flexibility.
• The vehicle should offer death benefits and beneficiary’s drawdown – including nominee and successor drawdown – to give clients maximum flexibility around the cascade of pension assets on death.
• The recommended investment funds should offer a balance of volatility control and equity exposure, at a cost acceptable to the client, covering advice over a lengthy period.
• You should enjoy the peace of mind that comes from recommending a provider with a solid reputation and a commitment to the market.
Propositions for your clients should be built to last and account for longevity risk, inflation, volatility, sequence risk and pound-cost ravaging. They should also be readily understandable and offer potential for investment growth. All of these factors will help you to satisfy your regulatory and client requirements, with a focus on transparency, simplicity, suitability, appetite for risk and good outcomes.
For further insight and expert guidance, please visit Scottish Widows Change Hub.
