Pension freedom means holistic financial planning is vital

Many advisers have started to enhance their business model through the development of a centralised retirement proposition.

Building investment solutions that are sufficiently flexible to adjust to changing needs and circumstances is particularly challenging in retirement. Here at Charles Stanley we seek to support financial advisers in delivering a wide range of investment services to support your propositions.

Since pension freedoms was introduced in April 2015, many advisers have started to enhance their business model through the development of a centralised retirement proposition (CRP).

Building investment solutions that are sufficiently flexible to adjust to changing needs and circumstances is particularly challenging in retirement. Here at Charles Stanley we seek to support financial advisers in delivering a wide range of investment services to support your propositions.

I recently took part in an Akademia session alongside Mike Barrett from the lang cat discussing the topical subject of Centralised Retirement Proposition – our discussion focused on three broad areas:

  • The core issues facing customers and risks in retirement,
  • How best to go about building a centralised retirement proposition,
  • If a centralised retirement proposition can exist yet still be independent.

Visit www.asset.tv/player/akademiaclient-distribution-player/106377 to watch the video and collect CPD. I hope you find this debate interesting and thought provoking.

My key takeaways are listed below:

John's takeaway 1 – Retirement is a journey not a destination

Pension freedom has introduced such a degree of flexibility around the use and deployment of an investors pension assets that what used to be a pension specific discussion is now more of a 'holistic' financial planning engagement. This gives rise to a broader and deeper goals-based discussion between client and adviser.

John's takeaway 2 – Your advice discussion needs to evolve throughout time

With advances in medical science, people are living longer – this creates two key retirement planning challenges for clients; the money will likely need to last longer, and accumulated wealth will have to support different needs as an individual's mobility, lifestyle and reliance on others starts to change. This has a wider impact that extends beyond investment strategy into enhanced client communication and intergenerational wealth transfer.

Pension freedoms - it's your money, you're entitled to it... But that brings on a completely different set of responsibilities - John R Porteous, Group Head of Distribution, Charlie Stanley

John's takeaway 3 – There is no such thing as a 'safe withdrawal'

There is often temptation to apply 'rules of thumb' when thinking through a sustainable withdrawal rate in retirement. In reality, circumstances change as do reliance and the need to access capital (especially in later life). A robust retirement planning strategy is not just build on a withdrawal factor – it considers a much wider range of issues.

How can Charles Stanley support you?

Charles Stanley understands that advisers are expected to build a standardised approach for their clients, but still want an investment solution to be tailored to their client's ambitions, concerns and attitude to risk. We offer a wide range of solutions including Model Portfolio Service, Inheritance Tax Portfolio, Court of Protection and Bespoke Discretionary Managed; standardisation doesn't have to mean no personalisation to their client's unique needs.

We are seeing people define retirement in many different ways - John R Porteous, Group Head of Distribution, Charlie Stanley

Get in touch with Charles Stanley today, call 02039305453, email ist@charles-stanley.co.uk or visit www.charles-stanley.co.uk/professional-adviser-services

At Charles Stanley, our investment services are designed to give you the time to look after the personal and professional relationship with your clients whilst we, operating within your agreed parameters, take over the responsibility of looking after your client’s investments. With more than 200 years’ proven experience, we have created financial security for many tens of thousands of people, and as at 30 June 2019 manage and administer in excess of £24 billion.

Depending on your requirements, we will work with you to implement an investment solution that is right for your client via our Bespoke Discretionary Fund Management service, Passive model portfolios or Inheritance Tax Portfolio service.

Disclaimers

Charles Stanley is not a tax adviser. Information contained in this article is based on our understanding of current HMRC legislation. Tax reliefs are those currently applying and the levels and bases of taxation can change. Tax treatment depends on the individual circumstances of each person or entity and may be subject to change in the future. If you are in any doubt, you should seek professional tax advice.

The value of investments can fall as well as rise. Investors may get back less than invested.

Charles Stanley is a trading name of Charles Stanley & Co. Limited, which is authorised and regulated by the Financial Conduct Authority.