Platforms’ drawdown solutions vital to good advice, says 7IM

Verona-Smith-700x450.jpgPlatforms that have well-developed drawdown solutions will be best placed to help advisers navigate clients through retirement, says Seven Investment Management.

7IM head of intermediary Verona Kenny says platforms with strong offerings in the drawdown space are vital for proper client management.

Speaking to Money Marketing, Kenny says: “Challenges for advisers to navigate include ensuring that clients don’t run out of their hard-earned money during retirement by drawing down too much, too quickly or by de-risking their portfolio too early and being recklessly cautious.

“Platforms that benefit from in-house investment expertise that have been the quickest out of the block to develop a sustainable drawdown solution are likely to be the winners in this space.

“Indeed, we have already started to see those advising on drawdown through centralised retirement propositions outsourcing to dedicated retirement income services which are run by investment experts and facilitated on platforms and this trend is only going to gather momentum.”

Risks in planning clients’ income in retirement, including sequential risk, portfolio valuation and inflation, are much discussed but have changed over the past few years.

Richard Bradley: How advisers are meeting the drawdown challenge

The 2015 introduction of the pension freedoms has also given advisers more opportunity to advise clients in the decumulation phase, Kenny adds.

“This is where platforms have a vital role to play. How they tackle this challenge of aiding advisers with the retirement opportunities will be a key trend in the next few years and may well divide the market.

“This is because the platforms with in-house investment expertise that offer these dedicated drawdown services can help advisers with the delivery of a sustainable steady stream of income for clients while at the same time managing sequence risk and risk of ruin.

“They also have a clear role in helping advisers build a service that is scalable and repeatable but in a cost-effective way.”


Tim Venner

Investment uncovered: Charles Stanley business development director on exploring a client’s financial world

Charles Stanley business development director Tim Venner outlines the benefits of in-house bespoke investment management Could you explain how you approach investment management – is it in-house, do you outsource it or combine both? We approach investment management primarily with an in-house solution for our clients. Our approach is based upon the client’s circumstances and […]

FNZ acquires German investment platform

Platform technology firm FNZ has today completed the acquisition of German investment platform company, ebase. Edinburgh-headquartered FNZ has purchased ebase (the European Bank for Financial Services) from German bank Comdirect Bank for €154m (£139m). The sale was first agreed to last year, and has since received regulatory approval. FNZ Group said that under its ownership, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm