Retirement Income Solutions: Exploring Potential Options

At Money Wise UK, we believe in empowering both advisers and individuals with useful information to help navigate the complex world of retirement income planning. Below, we provide links and summaries of various retirement income solutions available through financial advisers.
Please note: These are not recommendations. Research and suitability assessments must be conducted before considering any of these solutions. For individuals, we strongly recommend consulting a financial planner for personalised retirement advice.

Pacific Asset Management

Pacific Asset Management (PAM) offers a focused approach to generating natural income in retirement through their Defensive Income and Balanced Income Model Portfolios.

Key Features:

  • Clear Income Focus: Consistent, attractive yields, targeting inflation-adjusted growth.

  • Portfolio Options:

    • Defensive Income: Focused on capital preservation, ~66% fixed income, ~4.12% yield.

    • Balanced Income: Blend of income and growth, up to 85% equity, ~4.04% yield.

  • Professional Risk Management: Institutional-grade governance and active monitoring.

  • Adviser Support: Access to Pacific’s AdviserLab, branded materials, and real-time updates.

  • Competitive Charges: Total charges around 1%, delivering strong value relative to peers.

Aspen Advisers

Aspen Advisers delivers a structured yet flexible retirement income framework through their Central Retirement Proposition (CRP).

Key Features:

  • Bucketing Approach: Divides assets into Liquidity, Lifestyle, and Longevity buckets, mitigating sequencing risk.

  • Dedicated Income Portfolios:

    • Defensive Income: 4.0% yield | ~20% growth assets.

    • Conservative Income: 4.0% yield | ~40% growth assets.

    • Balanced Income: 3.93% yield | ~60% growth assets.

    • Growth Income: 3.86% yield | ~80% growth assets.

    • Equity Focus Income: 3.84% yield | ~98.5% growth assets.

  • The Four Seasons Portfolio: Designed to smooth returns across different environments.

  • Adviser Technology: Portfolio Discovery Tool for bespoke solutions.

  • Cost Efficiency: Portfolios range between 0.65%–0.90% in total charges.

Bordier UK

Bordier UK provides a specialist decumulation service, focusing on capital preservation and sequencing risk management.

Key Features:

  • Purpose-Built Risk Targeted Decumulation Strategies:

    • RTD 4: Low risk, strong fixed interest bias (53%).

    • RTD 5: Moderate risk, balanced strategy.

    • RTD 6: Medium-high risk, higher equity exposure.

  • Monthly Volatility Oversight: Ensuring strategies stay within Value at Risk (VaR) parameters.

  • Active and Passive Blend: 50:50 to maximise efficiency.

  • Low Cost: 0.30% annual management charge + 0.35% OCF.

  • Award-Winning Firm: Over 100 industry awards since 2014.

Brooks Macdonald

Brooks Macdonald offers a comprehensive decumulation framework with tailored retirement income planning.

Key Features:

  • Tailored Retirement Strategies: Adaptable to evolving client income needs.

  • Core Solutions:

    • Bespoke Portfolio Service: 15-bucket structure covering 7 years of income needs, minimum £500k.

    • Managed Portfolio Service (MPS): Five strategies, minimum £20k.

    • Multi-Asset Funds: Blueprint and Cornelian Ranges, minimum £1k.

  • Strong Focus on Sequencing Risk: Unique liability-matching income pots.

  • Centralised Investment Expertise: Over 60 investment professionals.

  • Regulatory Compliance: Aligned with FCA's thematic review of retirement income advice.

Just – Secure Lifetime Income (SLI)

Just offers a hybrid solution that delivers guaranteed income for life, with the flexibility of remaining invested via a SIPP.

Key Features:

  • Guaranteed Lifetime Income: Stable monthly income for life, mitigating longevity and sequencing risks.

  • Personalised Rates: Tailored based on individual health and lifestyle factors.

  • Flexibility: Works alongside other investments within a SIPP.

  • Optional Death Benefits: 100% Value Protection available.

  • FSCS Protected: Security and peace of mind.

  • Minimum Investment: £10,000, with availability on platforms like 7IM and Wealthtime.

Ideal For:

  • Clients seeking guaranteed income without losing flexibility.

  • Those concerned about outliving their retirement savings.

  • Individuals wanting a personalised, health-adjusted income solution.

Final Thoughts

These solutions offer a glimpse into the evolving world of retirement income planning. However, they require careful evaluation of client needs, risk tolerance, and retirement goals.
Independent financial advice is essential to ensure any solution is appropriate and sustainable over the long term.