The transition from saving to spending is known as decumulation. When it comes to planning for retirement expenses, your clients face unique and challenging decisions, whether they refer to it as income drawdown, decumulation, withdrawal, or simply enjoying their nest egg. This BUILD session will look at three aspects of decumulation from three industry-leading businesses.

Agenda

2023 Budget and Beyond – Royal London

This presentation considers the changes to pension legislation heralded in the March 2023 budget required to facilitate the abolition of the lifetime allowance. A firm understanding of these changes, and their impact on your clients, will be vital to create a plan to achieve good client outcomes. A theme central to Consumer Duty.

Overall, the abolition of the LTA from April 2024 is a positive change for those who would otherwise be impacted, but it’s not without its challenges. During the session, we’ll explore the impact the removal of the lifetime allowance will have on pension commencement lump sums, and the taxation of DC death benefits. So, as we work through the changes stemming from the Budget, we’ll endeavour to demonstrate to advisers how their knowledge and application of these changes help create good outcomes for their clients.

Learning objectives:

By the end of this session, you will be able to:

• Identify changes to the Lifetime allowance in the March 2023 budget
• Explain how LTA protections operate post-March 2023 budget
• Outline the changes announced in the Finance Bill 2023

Retirement Income Planning – Risk management for adviser and client – Brooks Macdonald

Investors’ confidence has taken a hit in recent times, with low-interest rates, increasing living costs and volatile markets. What’s more, many people who were approaching retirement are now feeling pressured to delay drawing down on their income. The FCA have then announced their Retirement Income review and sent out questionnaires to advisers, which give us an insight into their thinking. They then followed this up with several more detailed questions on the investment solutions being used.

In this session, Brooks Macdonald will explain how different strategies can meet the ever-changing regulatory backdrop, and meet the retirement challenge head-on.

Learn how:

• The upcoming FCA thematic review might affect central retirement propositions.
• Describe the current options and risks at retirement i.e., inflation
• How structured return investments are helping to secure income for clients.

Decumulation in the Limelight – IBOSS

Explore the concept of “decumulation,” a term widely discussed in the financial planning industry in the past year.

Delve into its significance from a multi-asset investment standpoint and discover how a DFM solution can support advisers in effectively managing clients, especially retirees, who opt for regular withdrawals.

Join Chris Metcalfe and Chris Rush from the IBOSS Investment Team as they elucidate the essential aspects. While acknowledging that investment management is just one facet of a comprehensive decumulation service, Metcalfe and Rush will highlight the three key characteristics a portfolio must possess to successfully align with clients’ goals in this context.

Learning objectives:

• BUILD a comprehensive understanding of the concept of “decumulation” and its implications in the context of multi-asset investments particularly.
• Acquire insights into the role of DFM solutions in assisting financial advisers in effectively managing clients, with a focus on retirees seeking regular withdrawals during the decumulation phase.
• Identify and comprehend the three key characteristics that a portfolio must embody to successfully align with clients’ goals in the decumulation space, recognising the broader aspects beyond investment management that contribute to a comprehensive decumulation service.