Pension planning has always necessitated good advice and a long-term approach to investing and managing money.
But over the past couple of decades, multiple changes have forced advisers to think differently about how their clients’ various needs might be best met in retirement.
Data sets show we are living longer, and in better health, well into our 80s – far beyond the Biblical threescore and 10; we are often working longer into what would have once been normal retirement age, at 60, and we have been given new freedoms in how we access our pension pots from age 55.
All these factors, together with a better understanding of the world around us, the ever-present threat of ‘unprecedented events’ and more information available at our fingertips, have necessitated a more nuanced approach to accumulation and decumulation strategies.
No longer do people simply take their defined benefit pension, convert it to an annuity (with the same provider) and live off the income. No longer do investment managers simply switch people over from equity assets to fixed income and cash at age 60.
Moreover, clients are demanding both an increased diversification of assets and an increasing focus on responsible investing, and this is where a multi-asset approach to investment strategies can come into play.
As the choice of funds available to consumers has never been greater, advisers will play a vital role in helping clients understand different multi-asset approaches and strategies.
This special report explores the various facets of managing pension pots, what it means to have a truly multi-asset approach, and how a multi-asset strategy can help clients secure a more financially comfortable retirement.
This special report qualifies for approximately 60 minutes’ worth of CPD.
Simoney Kyriakou is editor of Financial Adviser