The most populous age group in the UK today is aged 51 and in the next five years Pension Freedoms rules could therefore face a key test, as nearly one million people who are in this age group approach the point at which they could gain access to their pension pot.
According to the HMRC’s latest pension freedom statistics, £6.54bn was withdrawn from pension funds in the financial year 2016/17 – an increase of £4.3bn on the previous year. Payments were made to 393,000 individuals.
Since the introduction of pension freedoms, drawdown has now replaced annuities as the option of choice at retirement. However, many clients are not only expecting their pension pot to produce an income in retirement but under the new rules intend to leave some of their savings to future generations.
Whether this will be possible will not be known for a further 20 to 30 years for many clients. So how can financial advisers work with their clients to ensure that these goals are met?
In our recent research with advisers, we identified a number of concerns:
» The identification of a client’s future income needs
» Creating an income strategy that can be maintained through different market conditions
» Establishing an appropriate investment strategy for portfolios in decumulation. How should these portfolios differ to those in accumulation?
We are therefore delighted to invite you to join us at a morning event in London on 14 November to DISCUS(s) the challenges of the current pensions environment. Based on feedback from our previous events we will follow the same format, with two short presentations plus a chaired debate.
» Gregg McClymont // Head of retirement at Standard Aberdeen Investments // “Why the Government keeps changing the retirement rules and why more change is coming”.
» Abraham Okusanya // Founder and Director at Finalytiq // “Research on sustainable withdrawal strategies in retirement portfolios. What works and what doesn’t?”
We will conclude with a panel debate involving the presenters and our discretionary manager partners, who will consider the options available from an investment perspective in order to ensure client requirements can be met.
Our debates are always lively and informative and we are sure that this topic will generate interesting discussion!
The event is specifically for professional advisers and will take place on 14 November at the Standard Aberdeen Investments office at Bow Bells House, 1 Bread Street, London, EC4M 9HH. Registration and coffee will commence at 9am, with the formal presentations at 9.30am and finishing at 12 noon.
Don’t miss out on the opportunity to hear two highly regarded speakers and then discuss this important topic with your peers, investment managers and other industry experts. Sign up here to reserve your place.
This article was created by DISCUS to promote the upcoming Challenges of Managing Income event on 14 November in the City of London. You can find out more about our discretionary investment manager partners here ›