I recently attended the London event for the Seven Investment Management (7IM) Retirement Challenge Roadshow. It was a well planned and thought-provoking day, with a host of interesting speakers (my favourite was Graeme Codrington, Futurist and CEO of Tomorrow Today, who enlightened us on what the future might look like for retirees. Check out his video).
7IM also announced their innovative new retirement planning service to help clients in decumulation/ drawdown, which I’ve focused on as the basis for this post and video.
Transforming the client solution
The 7IM Retirement Planning Service is a service-led solution that I believe will radically transform the adviser/client engagement process. It is designed for financial advisers to streamline the complex financial planning required to support the needs of clients seeking to drawdown income – helping them develop their service offering.
The service brings together a number of strands within the 7IM offering, from their discretionary service to 7IM’s range of investment solutions. It offers full flexibility, which means advisers are not locked into using the entire suite. They can plug and play, using the components of most interest, all offered at no additional charge to 7IM’s standard service and investment management fees.
Dedicated support to lighten the administration load
Clients in retirement are likely to have amassed assets across a range of different wrappers, which increases the complexity of administering these accounts and thus increases the time that advisers (and their teams) need to spend consolidating and overseeing these. 7IM’s relationship managers can assist with the management of these accounts through their various service options and which are supported nation-wide. These include the analysis of existing assets, account opening and the on boarding of these assets.
7IM can also help to move the investments into an agreed strategy, along with the ongoing management of the account and, vitally, supporting cash management services for income requirements. Clients and their advisers benefit from a dedicated relationship manager who comes to see them and who can provide them with bespoke reporting against personalised benchmarks, as well as delivering regular updates on the portfolios and markets. Ultimately, the service aims to ease the administrative burden for advisers and offer them the chance to spend more time with their clients.
The service also enables advisers to invest client assets across multiple risk profiles and strategies within the same wrappers, which when combined with the 7IM targeted returns, enables advisers to 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.
To highlight how this works in practice, 7IM has provided this illustration and more information on the case study behind this can be read in their service brochure.
The service offers a degree of flexibility not typically found with similar services, such as for income to be paid on a specific day each month. Meanwhile, advisers can ensure the ‘pots’ are run to their clients’ own individual risk mandates and that aligns to each timeline.
Investment options to achieve a targeted return
7IM’s funds and models provide investment options for a targeted return over the long term. With 7IM’s long track record of providing reassurance to both advisers and clients alike, this too supports any cash flow modelling, as advisers have a guide as to what a client’s investments might achieve.
Gamified app for fact finding and ‘live’ scenario planning
The service can also start through a streamlined client fact finding process via the 7IMagine app, allowing the client to view ‘live’ simulations and the trade-offs to prompt the various decisions they need to make. What better way to get a client to conceptualise their retirement plan than to engage with it on screen using gaming technology?
The app also supports cashflow modelling, which can save advisers the attendant costs that industry software incurs. Clients, therefore, can see how much they can afford to withdraw from their savings each year and the most appropriate level of risk for the remaining investments. The adviser can run a range of scenarios, in the moment, and illustrate the benefits and drawbacks of each.
Watch the video to find out more
The video below provides a little more context on why 7IM have launched the service, the challenges it addresses and the key benefits.