A number of recent emotional events have made many clients seek out quality financial advice for the first time ever. What are they, why will this trend continue, and how do we adapt to take advantage of this opportunity? With an undeniable increase in the tax burden and complexity of the legislation how do we deliver tailored, tax efficient outcomes for clients? How does the current tax wrapper environment enable us to create, manage and adapt a sustainable approach in this unprecedented world of flexibility?

Learning Objective:

• Describe the recent events whose impacts have driven clients to seek professional advice
• Understand why utilising multiple investment wrappers can diversify tax risk and demonstrate the value of financial advice.
• Explain how a multiple investment wrapper approach can help facilitate true holistic planning for accumulating wealth, providing tax efficient income in retirement and maximise legacy planning.
• Discuss and explain this subject with a client in a clear, concise way and apply this knowledge to appropriate, individual client scenarios.
  

Using accumulated savings to create a sustainable lifetime income, whilst preserving access to capital, is a primary objective for many retiring clients. This can be challenging for advisers to reliably achieve in all market cycles. Designing retirement income strategies and withdrawal profiles for clients is complicated when the retirement length and asset returns are unknown. Life expectancy is just an average and in many cases you’ll want to plan for clients living much longer – perhaps 35 years in retirement – particularly if they’re in good health. This creates the challenge of producing a retirement income strategy that offers clients lifetime income certainty, with the flexibility to adapt retirement plans as their needs change. We’ll explore an approach, fully integrated into the advice process, that puts you in control to efficiently provide clients with income security whilst maintaining the withdrawal flexibility that allows them adapt their retirement plans as they evolve.

Learning Objectives

• Understand how the advice supply chain is changing to help advisers plan and implement with greater certainty.

• Explore how you can develop your CRP to build resilience into clients’ retirement income strategies, to provide the reassurance of a predictable lifetime income stream, whilst also giving them a ‘license to spend’.

• Using case studies, discuss how to easily implement a smarter retirement income approach.
  

We’ll delve into the intricate challenges of decumulation, a critical but very complex phase of retirement planning. We’ll highlight the essential role that guaranteed income can play in the most effective decumulation strategies. And we’ll explore the behavioural biases that get in the way of long-term planning and look at how to coach your clients through them.

With ongoing political and economic polarisation, continued inflation, and shifting fiscal priorities, the need for robust retirement strategies has never been greater. Key macro themes such as deglobalisation, resource constraints, and monetary-fiscal policy conflicts are expected to drive higher inflation over the long term. These dynamics have significant implications for asset behaviour, with traditional correlations between equities, bonds, and commodities becoming less predictable.

Against this backdrop our presentation explores the evolving landscape of retirement income planning, highlighting modern multi asset income funds as a pragmatic solution for generating reliable income for retirees in a volatile world. It considers the challenges faced by Advisers when seeking to deliver robust and repeatable investment outcomes for income focused clients as well as addressing the requirements and concerns highlighted in the FCA’s 2024 Retirement Income Advice Thematic Review. We explore various income generation styles—from pure income and withdrawal of capital growth to a “third way” natural income approach that blends thematic investing with a highly disciplined momentum-driven asset selection.

Finally, we explain the financial and psychological benefits of recommending the above third way income strategy not just for clients seeking income today but also in the years approaching retirement.

In summary, our presentation makes the case for multi asset funds with a well-managed income stream as a strong option for advisers/clients seeking dependable, inflation-beating retirement income strategies.

By the end of this session:

• You will be able to identify at least two ways in which traditional asset correlations (equities, bonds, commodities) have become less predictable in the current macro environment
• You will be able to explain the benefits of using a natural income investment strategy for pre & post-retirement clients.
• You will be able to articulate the principles of the “third way” income strategy and name three thematic investment areas it leverages.
  

For those taking retirement benefits, many aspects of the plan are likely to change as time goes on, whether that be due to changing legislation, portfolio suitability or personal circumstances. It’s clear that all vehicles, must be considered as part of a decumulation strategy. Whilst many will want a degree of flexibility, consumer understanding of where guarantees might fit and to what extent is an important factor. In recent years, we have seen significant movement in annuity rates, prompting many to revisit guaranteed income. Add to that the need for personalising any secure income accounting for each person’s own medical and lifestyle situation and the benefits of a guarantee could significantly improve the level of income available. In this session, we’ll uncover some of the areas where a bit of extra detail can make a big difference, the importance of consumer understanding and the benefits of a blended approach.

Learning Objectives

• Recognise the types of changing circumstances likely in retirement

• Discuss the impact of cognitive ageing

• Re-examine the place for guaranteed income as part of a drawdown strategy "

A number of recent emotional events have made many clients seek out quality financial advice for the first time ever. What are they, why will this trend continue, and how do we adapt to take advantage of this opportunity? With an undeniable increase in the tax burden and complexity of the legislation how do we deliver tailored, tax efficient outcomes for clients? How does the current tax wrapper environment enable us to create, manage and adapt a sustainable approach in this unprecedented world of flexibility?