Asset manager Invesco has launched a retirement solution with Just Group to meet the needs of "modern-day retirees".
The solution for advised clients combines Invesco's model portfolio services with Just Group's guaranteed income producing asset, known as Secure Lifetime Income.
A combination of the two will sit within existing Sipp drawdown wrappers and is expected to help advisers mitigate key retirement risks, such as longevity, sequencing risk and unknown life events.
Kate Dwyer, head of UK distribution at Invesco, said: “With more of us set to live longer and spend more time in retirement, people need access to more innovative retirement solutions.
"Modern-day retirees need greater flexibility and options to ensure their savings are working as hard as possible for them."
"We believe Invesco can play an important role in driving innovation and supporting advisers when it comes to managing the risks to their clients’ income during decumulation."
The companies said the offering comes in response to the FCA's thematic review of retirement income advice and at a time
when millions are looking for new ways to invest their money and protect their income as they move into retirement.
The solution is expected to provide uncorrelated guaranteed income whilst lowering the dependence on withdrawing income from a growth portfolio through retirement.
Kavi Myladoor, retail retirement income director at Just Group, said: “The suitability of investment portfolios to support clients who are spenders, rather than savers, is in focus and under scrutiny by the conduct regulator.
"The needs of these clients and the investment risks they face are very different when taking an income and continuing to invest for growth. They need retirement focused investment solutions.”
tara.o'connor@ft.com
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