Many advisers will be familiar with the Centralised Investment Propositions (CIPs); structured investment processes that aim to deliver a robust solution that is both repeatable and consistent for different clients.


More recently, Centralised Retirement Propositions (CRPs) have emerged. CRPs recognise that there are key differences between building a fund of money before retirement and applying that money during retirement to provide an income for life.


Successful decumulation strategies require the management of a number of interrelated risks. It’s not essential to develop a Centralised Retirement Proposition to manage these risks, but it can make sense to adopt a consistent, structured approach. 


Key components of a Centralised Retirement Proposition

Every firms’ decumulation strategy will be different, but they should all include a number of common elements. For example, data on longevity, an assessment of capacity for loss and attitude to risk, categorisation of expenditure and an evidenced based approach to sustainable withdrawal rates.


Whether you formally adopt a CRP or not isn’t crucial, what is important is that you have a robust evidence based process that covers all of the issues your clients face as they enter retirement.


Six elements of a Centralised Retirement Proposition