Partner Insight: Have you reassessed your clients' risk appetite well enough in 2021?

Canada Life’s retirement solutions director, Nick Flynn, on the opportunity to reassess the solutions on offer to clients today

clock • 2 min read

Are individuals today more cautious as they approach retirement?

We have not seen direct evidence of this yet, but I do believe we will move in that direction overall. Since 2008, we have seen fund values and pension values move steadily higher and higher without any real shocks to the system or significant market falls. But this time last year we had an enormous shock. It was unprecedented and for the first time ever we did not know how or if things would recover. Everyone has been reminded and become much more aware again that the stock market is a volatile entity, and markets can go more than one way. 

Coupled with that, the onset of a pandemic - which no one would ever have predicted, even as a ‘known' market unknown - coupled with ongoing political woes has meant there is a need to focus on planning for a retirement that is flexible and will be able to meet retirees' short and long-term needs

 

Is there a need in 2021 to review client risk appetite or assess their risk and suitability for the areas they are invested in? Has this become more important?

Yes, absolutely. The review process is critical to maintaining a firm hold on clients' objectives at any time. But 2021 is a great opportunity to change things up because if you advised on a top of the range product in 2015, there is almost certainly a better version of the same thing out there now. In fact, competition and technology have seen charges drop dramatically, so why not help your clients take advantage of that?

The pandemic has also seen many individual circumstances change too, and many people are finding themselves in different scenarios that they had not imagined. Retiring earlier or later, for instance. There will almost certainly be new and more flexible products to suit them in the market today.

 

Click here to access the full article in our Remodelling Retirement guide, which explores the changing nature of retirement in a post-pandemic world and asks advisers the key opportunities and challenges facing them in 2021.

More on Retirement Income

For the sake of future generations pensions must be invested correctly

For the sake of future generations pensions must be invested correctly

Important wealth managers and financial advisers talk to clients

Steven Levin
clock 27 January 2022 • 4 min read

Partner Insight: How are low interest rates impacting homeowners, savers and retirees?

If last year, the biggest concern was rising interest rates, today interest rates are at their lowest level in history and the government is doing all it can to get the UK economy through the crisis. This means the outlook for inflation and interest rates has changed drastically from this time last year.

Sponsored by Architas
clock 27 October 2020 • 2 min read

Partner Insight: Shifting retirement landscapes and the COVID-19 challenge

Since 2015, the retirement landscape has shifted with new government rules around pension freedoms allowing individuals more choice in how and when they access their retirement savings.

Sponsored by Architas
clock 13 October 2020 • 2 min read
Trustpilot