The FCA discussion paper on Ageing client and advice DP16/1 asks “how can firms adapt to meet the advice needs of an ageing population“
This paper covers a broad range of advice and financial issues affecting an ageing population and those involved in retirement advice should familiarise themselves and consider how they will adapt their business to accommodate an ageing client base.
Central to the paper’s themes are the growing number of retirees seeking advice, with more using investment products than ever before.
Increasing longevity and with it the need to provide clients with sustainable income from their retirement savings in a simple and adaptable way is a key element to planning in this areas - even more so given the impact of pension reform.
Historically annuities were the dominant solution used for those wanting certainty and simplicity but with declining rates as a result of rising longevity and pension reforms, desire for these solutions has fallen dramatically.
So what are the options?
One option for advisers could be a simple Multi- Asset approach.
The advantages of a Multi-Asset approach are that some are designed specifically for targeting income and preserving long term capital whilst the diversity of assets can reduce volatility.
This combination can prove very attractive for those investing for retirement income.
When considering these approaches advisers should review
- The experience and credentials of the manager.
- Is the client outcome clear and in line with the investors needs: has it been delivered historically?
- Is the portfolio transparent: is it clear what is being invested in and why?
- Is the Investment process simple and in being so both understandable and explainable?
Multi-Asset income solutions are a simple, efficient and cost effective way of delivering a diverse portfolio of income producing assets with outcomes and risks in line with clients’ needs.
Want to know more?
Seneca Investment Managers are experts in Multi-Asset Investing for income and have a long track record of meeting and exceeding client income objectives.
Find out more by visiting Seneca IM
Please remember the views expressed here are current at the time of writing and may change. They do not take into account the particular investment objectives, financial situations or needs of investors and are not intended as investment advice or a recommendation to invest. The value of investments and any income will fluctuate and investors may not get back the full amount invested.
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