In Australia, the retiree client group is growing in size and it is essential that financial advisers have the right tools and resources to meet their particular needs. As such it is important to understand the motivations and drivers behind the behaviour of retiree clients as they move from accumulation to decumulation.
To help financial advisers develop investment approaches that meet the specific needs of their retiree clients, Fidelity has developed a research paper “Building Better Retirement Futures”, in conjunction with the Financial Planning Association of Australia (FPA) and CoreData.
The paper outlines some of the key financial issues and considerations specific to retirees and helps advisers design the best strategies for post-retirement decumulation.
“Financial planners are at the frontline of helping people make the most of their assets and achieve their best possible retirement. However, the strategies that suited clients in accumulation phase may no longer work in retirement, and advisers will need to develop new approaches specifically designed for their needs.
For instance, the paper outlines the different strategies that advisers can use with their retiree clients such as keeping the same strategy as in accumulation phase; transitioning to a more conservative asset allocation; simple bucketing; more complex bucketing; or income layering. It then looks at the pros and cons of each approach.”
Richard Dinham, Head of Client Solutions and Retirement
Please contact us on 02 9299 1500 if you seek further assistance on this topic.
Source : Fidelity January 2021
Reproduced with permission of Fidelity Australia. This article was originally published at https://www.fidelity.com.au/insights/investment-articles/building-better-retirement-futures/
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