VK: The short answer is a resounding no. I would go so far as to say that as an industry we have failed to innovate and failed to deliver choice, which has meant that advisers do not have the range of robust and flexible retirement plans for clients that they need.
Our industry, and platforms in particular, remain brilliant in helping to facilitate clients accumulate wealth for retirement.
However, when clients tip over into decumulation, we really need to do better to ensure clients don’t fall into the pitfalls created by pension freedoms.
FTA: Which areas in particular should providers be more innovative in? What are the main problems that still need solving?
VK: Robust, flexible solutions delivered in an engaging and efficient manner is what we need, but critically we need to ask clients what they want.
We did some research at the end of 2022 that revealed that nearly one in three (32 per cent) of the retirees surveyed had regrets about their retirement choices:
- 30 per cent would ensure they have greater guarantees on their income;
- 20 per cent would take less from their savings in cash upfront;
- 20 per cent would look for a tax-efficient approach; and
- 19 per cent would opt for greater flexibility.
We need to listen and respond as no one has the luxury of a do-over for their retirement.
The industry has responded to changes in regulation of recent years, but there is still much work to be done so that it can continue to deliver for its clients in the most relevant way.
FTA: Last year a study showed 53 per cent of advisers had a centralised retirement proposition – do you think advisers are missing a trick?
VK: Many advisers understand that adopting a CRP has significant advantages, but unfortunately many are yet to adopt a CRP that will enable them to have a holistic view of their clients’ retirement.
A one-product-fits-all solution does not exist, and choosing the right tools is essential to delivering the flexibility and convenience that clients need for their retirement plans.
It takes time to build a CRP, but once an adviser has been able to incorporate all the relevant tools, they will be able to streamline their workflows as well as be able to demonstrate a consistent approach towards their clients’ retirements.
FTA: What are the main benefits of having a CRP?
VK: Having a CRP should help the adviser find the best possible solutions according to their clients’ individual needs.
A CRP empowers the adviser with a robust, repeatable process that guarantees that the client is leveraging the best services in the market – reducing risks for clients – and that will enable the adviser to grow their business at the same time.
A good CRP should also enable advisers to change retirement income strategies for their clients after an initial strategy has been selected, so clients can have the comfort of knowing their retirement plans can adapt quickly to new circumstances.
