Hybrid solutions – an innovation in retirement planning

by Andrew Duthie and Richard Hulbert
Insight Support Analyst (Wealth) and Insight Analyst (Wealth)

May 2016

While drawdown has been with us for over two decades, it has typically been high net worth clients who have benefitted. Now retirees with more modest pension savings are discovering the possibility of a more flexible retirement, and providers are starting to offer packaged solutions to meet their needs. 

With life expectancy increasing and low interest rates, the current generation of retirees, the baby boomers, are placing high demands on their financial resources. While many will tell us they do not want an annuity they still desire a secure inflation-proofed income for life with the flexibility to make changes to meet their evolving income and capital needs.

While many existing funds and strategies have been simply rebadged for today’s retirees, a few have created step changes in retirement advice and The Retirement Account from Retirement Advantage falls firmly into the category of innovators. It has been designed to deliver the flexibility and simplicity for both advisers and their clients that previously would have not been an option.

The pension industry is awash with terminology for new products and at Defaqto we now have two very clear definitions.

Hybrid – combination of separate retirement solutions, facilitated through a single product wrapper

Blended – combination of separate retirement solutions, facilitated through a multitude of individual product wrappers

The Retirement Account from Retirement Advantage is a hybrid solution and this CPD accredited document will explain the benefits that can arise for many clients created by facilitating retirement income through a single solution.