Expert: Philip May - Director Capital Group Facilitator: Don Wild
Headlines:
- Capital Group have assessed a £500billion opportunity over the next decade in the Drawdown Market. To meet the needs of this market, a greater focus will be placed on investment solutions to help provide answers, which are currently relatively under developed in this part of the market
- NMG research have been employed to provide comprehensive frontline research from both customers/clients and financial advisers. This quantitative and qualitative research will assist in identifying the current and future issues and possible solutions
- Current market volatility and inflation are key concerns, as people start to focus more on whether their portfolios are fit for the future
- Advised people are unsurprisingly more informed, and potentially able to navigate the market turmoil more effectively
- The conventional ‘4 pots’ approach to managing income in retirement, is not at the foremost of minds and a more flexible approach may be more appropriate
Discussion points:
For adviser firms specifically, only 30% of advice firms use a Centralised Retirement Proposition (CRP) currently, although many firms are using a similar portfolio to the CIP while employing a different risk rating.
Flexible income options still pre-dominate. While annuity options are increasingly part of the discourse there is still not a big take up in annuities.
Demand for MPS and multi-asset solutions are increasing and will be a growing solution for future income needs.
Key takeaways:
- There are unrealistic client expectations on what can be achieved, in regards to income, in a higher inflation and volatile period which is a concern
- The potential solution is an active, dynamic, target-date solution which can help provide a guide path through retirement
- The session provoked some debate and thoughts on how financial advisers and planners will help advise and guide this growing cohort of clients
