Advisers are re-evaluating retirement portfolios due to new regulatory pressures.
- A shift towards centralised retirement propositions (CRP) is observed among advisers.
- A recent study highlights changes in retirement income advice by the Financial Conduct Authority.
- Initially, only 17% of advisers had separate retirement propositions from their investment strategies.
- By October, a marked increase to 29% was noted among advisers adopting CRPs.
Advisers are re-evaluating retirement portfolios in light of recent regulatory pressures. A trend towards adopting centralised retirement propositions (CRP) is emerging among financial advisers. This move is largely influenced by the Financial Conduct Authority’s new thematic review focusing on retirement income advice. The report from Wealthtime and Copia Capital underscores significant shifts in how advisers structure retirement portfolios.
Initially, only 17% of advisers managed a dedicated CRP distinct from their centralised investment proposition (CIP). The vast majority, at 80%, applied the same investment strategies across both accumulation and decumulation phases for their clients. This unification approach highlighted a reluctance to distinguish retirement planning from general investment strategies.
However, recent developments demonstrate a significant pivot in advisers’ approaches. By October, 29% of advisers reported adopting CRPs, marking a clear increase from earlier statistics. This shift suggests a growing recognition of the need for tailored retirement strategies, separate from broader investment methods, to better cater to retirees’ specific financial needs.
Meanwhile, the proportion of advisers maintaining the dual-use of CIPs for both stages of financial planning saw a reduction. This change aligns with the industry’s evolving understanding of retirement planning’s unique challenges and opportunities. It reflects a broader commitment to refining retirement strategies in response to regulatory expectations and client needs.
The findings presented during Wealthtime and Copia’s Rethinking Retirement Roadshows highlight these evolving practices. They underscore the ongoing transformation within the advisory sector as it adapts to new guidelines and seeks to improve client outcomes in retirement planning.
Advisers continue to adapt, indicating an ongoing evolution in retirement portfolio management strategies.
