Expert: George Pullar, Partnerships Development Manager, LV= Facilitator: Sam Shaw, Journalist and Consultant
Headlines:
- The importance of aligning CIPs and CRPs with clients' needs, objectives, and characteristics, especially in retirement.
- Smoothing solutions in centralized de-risking propositions can mitigate volatility and drawdown risk as clients approach retirement
- Clear communication with clients about the risks and benefits of investment strategies, including smoothing solutions are essential, particularly given concerns about transparency and client comprehension
Discussion:
The session focused on regulatory scrutiny, risk management, and the role of smoothing solutions in retirement planning and investment strategies.
Delegates discussed the FCA's thematic review, differences between Centralised Investment Propositions (CIPs) and Centralised Retirement Propositions (CRPs), gender disparities in risk perception, and the benefits of smoothing solutions in de-risking portfolios. Clear communication, tailored solutions, and technological support were emphasised, while gender differences in risk perception and the importance of clear communication were focal points.
Key Takeaways:
- Review propositions alignment - Ensure CIPs and CRPs meet clients' needs, especially in retirement.
- Gender-tailored conversations: Consider separate conversations based on gender to address risk perception disparities
- Evaluate smoothing solutions: Assess the role of smoothing solutions in de-risking strategies for retirement portfolios
- Enhance communication: Clearly communicate the risks and benefits of investment strategies, including smoothing solutions
- Leverage technology: Implement robust technology and planning tools to support post-retirement planning and portfolio management
