Asset manager Invesco and retirement specialist Just Group have launched a new retirement solution for advised clients.
It has been introduced to help meet the changing needs of those approaching or already at retirement.
The announcement comes in the wake of the FCA thematic review of retirement income advice and at a time when millions of savers are looking for new ways to invest their money and protect their income.
Invesco said with people living longer than ever and in today’s challenging investment markets, there needs to be greater product innovation in retirement solutions.
The partnership will bring together Invesco’s model portfolio service (MPS) and Just Group’s guaranteed income producing asset, delivered through its secure lifetime income solution (SLI).
Together they provide a differentiated retirement solution, offering advisers access to a new proposition aimed to meet the needs of modern-day retirees.
The solution will provide uncorrelated guaranteed income while lowering the dependence on withdrawing income from a growth portfolio through retirement.
SLI is designed to sit within existing pension drawdown arrangements (Sipp wrapper), helping advisers to mitigate key retirement risks, such as longevity, sequencing risk and unknown life events.
Invesco head of UK distribution, Kate Dwyer, 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.”
She added that the two propositions, currently only available separately, will work together to give advised clients the option to have the guaranteed income of a secured lifetime product while getting the potential growth benefits of a model portfolio, with the flexibility to reinvest the income they don’t immediately need.
Just Group retail retirement income director Kavi Myladoor said: “Combining a guaranteed income producing asset such as that delivered by our SLI solution with growth model portfolios, within the Sipp drawdown wrapper, has been shown to increase the probability of delivering higher long-term portfolio value, higher income and a more sustainable plan.
“We are delighted to work in collaboration with Invesco to offer a highly efficient and differentiated retirement income proposition to help deliver better client outcomes.”
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