Matt Pheasey, Director of Intermediated Distribution, introduces Science and Retirement

CHALLENGING CONVENTIONAL WISDOM

Many widely held scientific beliefs have been proven wrong over time. Before the introduction of germ theory in the late 1800s, it was widely believed that bad air caused disease. More recently, a commonly held view was that stress caused ulcers (ulcers are caused by bacteria).

We’ve been challenging some of the conventional wisdom around financing retirement. We think you’ll be surprised by the results.

The analysis suggests that people could boost their income in income drawdown (or improve the sustainability of income) if they annuitise part of their assets. And that’s not all. This strategy could also increase any legacy payable on death.

  • A new formula for retirement. We commissioned global actuarial firm, Milliman, to stochastically model different ways to provide a retirement income beyond using the main asset classes. The analysis suggests there is a simple way to potentially either increase the income your clients take or improve the probability of the income they’ve chosen lasting for life.

  • A unique new tool. We’ve also developed a calculator to show how partial annuitisation could improve sustainability of income for your clients and the impact on death benefits at the end of a selected term.You’ll be surprised how often the death benefit will be higher using our approach, even after 20-30 years or more.

There's lots more too, for example, new ideas and strategies. Solutions to help navigate the risks faced at retirement. In fact, everything you might need to secure a comfortable retirement for your clients.