The FCA has zoomed in on the increasingly complex retirement income market. While some advisers have been delivering, the regulator this year identified examples of poor practice. Meanwhile, the political and economic landscapes are shifting.

Even as advisers look to adapt to recent changes, an ageing population – 25% of people in the UK are expected to be over 65 by 2050 – makes good retirement outcomes for consumers perhaps more critical than ever before.

Unique Financial Planning CEO Philip Martin will explore the biggest retirement income challenges facing advisers today and share an overview on broader issues that will affect the market.

Learning objectives:

• Understand the key challenges facing advisers with the emerging complexity of giving advice to savers wishing to provide retirement income
• Understand some of the key challenges posed by the FCA in its Retirement income advice thematic review TR24/1
• Consider the other main political and environmental issues that will impact on the retirement market more generally
  

The outcomes of The Consumer Duty and Thematic Review of Retirement, and the subsequent challenges present to advisers, have led some to claim that bespoke investment management is a less relevant proposition. Despite a shift towards unitised investment solutions, we believe high net worth individuals still require a specialised approach.

This session will argue that bespoke investment management is essential for:

Avoiding foreseeable harms: Full control and visibility to help to avoid foreseeable harm to clients.

Effective Tax Management: Tailored strategies optimise tax efficiency across accounts and wrappers.

Decumulation: Personalised, dynamic solutions to help manage drawdown and long-term income.

Value over cost: A truly personal service offering real value, not just low cost.

Adaptability: Flexibility to navigate challenging investment environments and inflation.

Only bespoke investment management can offer such a well-rounded service so yes, its death has been greatly exaggerated.

Learning objectives

By the end of this presentation, you will be able to explain:

• The scale of the impact that recent regulation has had on managing bespoke portfolios
• The difficulties managing foreseeable in unitised solutions
• How taking a fluid approach to investing allows the flexibility to adjust portfolios and soften any potential negative impact
• How personal service offers rounded value (part of the cost and value element on Consumer Duty)
  

The FCA's thematic review of retirement income advice has outlined how unsuitable advice has the potential to cause significant harm to client outcomes, in particular the risk that clients suffer a reduction in the level of income they expected and/or their funds run out too soon.

Bordier UK will explore the challenges of managing clients in drawdown, particularly the management of sequencing risk – one of the biggest risks facing clients taking a regular fixed income in their retirement.

• Highlight – areas for consideration/improvement.
• Outline – good practice for providing retirement income advice.
• Understand – the implications of sequencing risk.
• Examine – support to help manage client expectations.
• Learn – a different investment approach to support a regular income.
  

It is clear from the recent FCA thematic review that retirement income continues to be a key focus. The expectation is that firms will have a robust process for ensuring good client outcomes, taking into account risks that are very different to those in accumulation. In this session, we will cover the approaches to producing an ongoing income and the importance of stress-testing these. We’ll also look at the indicators that suggest a guaranteed income would be appropriate and how this can be built in whilst enhancing the overall investment and legacy objectives.

By attending this session, you’ll be able to:

• Document the key elements of a retirement income advice process
• Recognise the importance and methodology of stress-testing
• Discuss the additional benefits of adding guaranteed income to a drawdown portfolio
  

Striking the right balance between your clients' goals and their tolerance for risk during retirement can be tricky. With the Financial Conduct Authority's thematic review shining a light on retirement income advice, it's increasingly vital for firms to evaluate their Centralised Retirement Proposition (CRP) to ensure they are providing the best possible outcomes for clients as they draw down their retirement funds.

This session will explore:

• How a better understanding of attitudes towards financial risk can help deliver optimal client outcomes in retirement
• The importance of building stronger relationships with your female clients
• The psychology of investing and how you can mitigate behavioural biases and support client composure
• The benefits of a Centralised Retirement Proposition and how to enhance retirement portfolios