Ask clients who are preparing to retire whether they would like to maintain the same standard of living in retirement as they had while working, and I'm sure most will answer, 'yes'.
But accumulating enough savings to meet those expectations is challenging.
Before the pension freedoms were introduced, there was little in the way of choice - those at retirement simply bought an annuity, which paid a regular income for them to live off.
Drawdown has certainly allowed some clients to enjoy more flexibility in their retirement income but it does more financial planning, which is where advisers come in.
Kate Smith, head of pensions at Aegon, says: "Retirement income is what someone will need to replace their current income when they stop working.
"Retirement income needs will depend on the type of life people would like to lead once they give up work. The amount needed will depend on people’s lifestyle, aspirations, health and life stage."
As Fiona Tait, technical director at Intelligent Pensions, observes it is possible to save for retirement using a range of savings vehicles, including Isas, stocks and shares, and in some cases, property. Although she acknowledges the most obvious route is a company or personal pension.
But with clients living longer once they have retired, it is likely income needs will fluctuate throughout those later years - potentially peaking when clients require adult social care towards the end of their life.
This guide, which is worth an indicative 60 minutes of CPD and can be read by clicking in the image above, asks what are the typical retirement income needs of clients?
It also looks at the different ways in which to accumulate savings to draw on in retirement, as well as the type of options now available to retirees post-pension freedoms.Â
Finally, this guide, in association with Scottish Widows, will ask what advisers need to know about dealing with vulnerable clients.
Contributors to this guide: Kate Smith, head of pensions at Aegon; Andrew Tully, pensions technical director at Canada Life; Billy Burrows, founder of William Burrows Annuities; Fiona Tait, technical director at Intelligent Pensions; Sir Steve Webb, director of policy at Royal London; Russell Warwick, managing director of Primetime Retirement; HM Revenue & Customs; Financial Conduct Authority; Money Advice Trust; Pimfa.
Ellie Duncan is features editor of FTAdviser and Financial Adviser
