Building a firm's value 

A robust retirement process can help create value for a firm in several ways:

  • Clients are less likely to run out of money during their retirement. In some circumstances, funds could even increase over time.

  • A thorough, evidence based, retirement proposition provides confidence in the firm’s expertise and the quality of its recommendations.

  • Clients will continue to rely on the firm for advice when their circumstances change during retirement.

  • There are multiple opportunities to engage with clients throughout their retirement journey. These include intergenerational transfers, lasting power of attorney, care needs  and securing guaranteed income.  

The mortality cross subsidy of an annuity means its income is difficult for other asset classes to match without increased risk. Without a robust evidence-based retirement income proposition, the long term value of a firm's decumulation business is likely to be worth less due to the increased risks associated with decumulation advice. Using guaranteed income products to underpin a client’s essential income provides certainty and removes some of the complexity that would otherwise exist.

Find out more in our New ERA webinar The Review Process, or see other topics covered in the New ERA series