LATER LIFE PLANNING
WHAT IF … YOUR CLIENTS DON ’ T KNOW WHAT THEY DON ’ T KNOW ?
THE ADVISER CHALLENGE OF PROVIDING ADVICE
Nick Flynn Retirement Solutions Director Canada Life
The need for a modern pension plan that can help you take advantage of pension freedoms on your clients ’ behalf is a must .
Are individuals today more cautious as they approach retirement ? We have not seen direct evidence of this yet , but I believe we will move in that direction overall . Since 2008 , we have seen fund values and pension values move steadily higher without any real shocks to the system or significant market falls . But last year we had an enormous shock . It was unprecedented . Everyone has been reminded and become much more aware again that the stock market is a volatile entity , and markets can go more than one way . Coupled with the pandemic – which no one would ever have predicted , even as a ‘ known ’ market unknown – there is a need to focus on planning for a retirement that is flexible and will be able to meet retirees ’ short- and long-term needs .
Is there a need in 2021 to review client risk appetite or assess their risk and suitability for the areas they are invested in ? Has this become more important ? Yes , absolutely . The review process is critical to maintaining a firm hold on clients ’ objectives at any time . But 2021 is a great opportunity to change things up . Competition and technology have seen charges drop dramatically , so why not help your clients take advantage of that ? The pandemic has also seen many individual circumstances change too , and many people are finding themselves in different scenarios that they had not imagined : retiring earlier or later , for instance . There will almost certainly be new and more flexible products to suit them in the market today .
Let ’ s talk about Canada Life ’ s Retirement Account solution . What ’ s unique about it ? The Retirement Account is packaged so you can do many things within one wrapper , and we ’ ve expanded the investment choices significantly in terms of the funds available . The annuity works particularly well as it can be written on enhanced terms , so if someone is a smoker or has heart problems , they could gain the benefit of the enhanced annuity within the drawdown plan . The Retirement Account gives substantial flexibility that reflects your clients ’ lifestyles and needs . The ability to simply turn down
THERE IS A NEED TO FOCUS ON PLANNING FOR A RETIREMENT THAT IS FLEXIBLE AND WILL BE ABLE TO MEET RETIREES ’ SHORT- AND LONG-TERM NEEDS .
or even turn off annuity income creates great flexibility and planning opportunities .
Who is the typical Retirement Account customer ? Some of our customers have annuity only or have a bit of annuity and a bit of drawdown , or have complete drawdown . The nice thing about the product is they can pick and choose the future scenario that best suits them and change their plans accordingly . If they decide that they do not need some of the annuity income anymore , they can reinvest through the accounts drawdown element or defer it . That isn ’ t available under ordinary annuities , but it ’ s available under the Retirement Account . It can also help the policyholder and dependents control income tax . For example , any unspent income or fund can be passed down , as long as they ’ ve completed an expression of wish form and our terms and conditions . That flexibility is more essential than ever as people live longer and lifestyles change .
For more information and to read our ‘ Remodelling Retirement ’ guide , visit canadalife . co . uk / simplybiz
Canada Life Limited , registered in England no . 973271 . Registered office : Canada Life Place , Potters Bar , Hertfordshire EN6 5BA . Member of the Association of British Insurers . Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority .
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