More than ever, the onus is on advisers to deliver effective and easy-to-understand at-retirement advice.

Since the introduction of the Pension Freedoms in 2015, the number of individuals seeking financial advice ahead of or at retirement has grown, with many retirees looking for alternatives to annuities. This provides advisers with a great opportunity to build meaningful long-term relationships with their clients.

While the opportunities abound, the delivery of effective at-retirement advice is not without its challenges. Early discussions with a client about whether they have thought about how much money they are going to need for retirement are likely to fill many individuals with anxiety. Likewise, it is no easy feat to explain the intricacies of a drawdown approach in simple terms.

A transformative service

With these challenges in mind, Seven Investment Management (7IM) has created a Retirement Income Service to enhance the engagement between an adviser and their client during these discussions. The service brings together a number of strands within the 7IM offering, from their discretionary service through to their range of investment solutions. Meanwhile, a cash management service can also help the underlying client to meet their income requirements.

The Retirement Income Service offers full flexibility, which means advisers are not locked into using the entire suite. They can plug and play, using the components that are of interest.

Advisers can invest client assets across multiple risk profiles and strategies within the same wrapper. They can also tailor the strategy to fit with their cash flow plans for their clients, depending on their time horizon. For example, the cash account could take care of the next two years of income, the ISA can be used for income and some of the SIPP can be designated to provide a potential inheritance for future generations.

Live scenario planning

While all of these functions are to be applauded, one in particular stands out for us: live scenario planning. This service is provided via the 7IMagine app, which helps advisers with the fact-find and scenario planning stages of the advice process. Advisers are able to draw on cutting-edge, gaming technology to outline how much a client can afford to withdraw from their savings each year and what the most appropriate level of risk could be for their remaining investments. It allows the adviser to illustrate the potential advantages and disadvantages associated with different strategies in a range of scenarios.

Meanwhile, cashflow modelling is available, which can save advisers the costs associated with buying in industry software.

7IM developed this service because they recognised the need for financial planners to balance their clients’ immediate spending plans with their longer term objectives – not least, making sure they have enough money to fund their whole retirement.

7IM’s Retirement Income Service provides advisers with a toolkit to enable their clients to visualise their savings across different pots, each with its own objective. This means they can plan their short-term cashflow needs, whilst building an investment strategy to meet the client’s longer term objectives.

At DISCUS, we salute 7IM for providing advisers with a toolkit which can ultimately improve their engagement with the underlying client. This is all the more important during the at-retirement advice process, which requires much skill and sensitivity on behalf of the adviser.


This post was created for the DISCUS website for Seven Investment Management (7IM) to highlight their Retirement Income Service and their new 7IMagine app. You can find out more about 7IM and their investment services here ›