Defaqto identifies new innovations in retirement solutions

10 May 2016

Drawdown in retirement has typically benefitted high net worth clients, but now retirees with more modest pension savings are discovering a more flexible retirement: secure inflation-proofed income for life with the flexibility to make changes to meet their evolving income and capital needs. Providers are also starting to offer packaged solutions to meet their client’s needs.

Defaqto, a provider of independent financial product and fund information and ratings, today publishes ‘Hybrid solutions – an innovation in retirement planning’. This CPD accredited case study examines the use of hybrid solutions in retirement planning, where one product combines both flexible and guaranteed income. It explains the differences between these and blended solutions, where multiple products are used.

Andrew Duthie, Insight Support Analyst (Wealth) at Defaqto who co-wrote the study says:

"It has become clear from various studies and press articles that clients want to make use of the flexibility that the ‘Pension Freedoms’ bring but still have a strong desire for the security of a guaranteed income.

It is this same desire that has led to innovation in the retirement space of hybrid and blended solutions, allowing retirees with more modest pension savings, who would previously have been advised to purchase only an annuity, to consider the possibility of a more flexible retirement. Advisers will need to be aware of these new options and consider how to explain them to their clients".

This new case study offers guidance to advisers about these new retirement solutions and explains the circumstances where they could be considered. Hybrid solutions – an innovation in retirement planning’ is free to download at defaqto.com/advisers/resources/publications-list/hybrid-solutions-case-study/