Understand your client's needs

Approaching retirement clients will need further advice on decumulation. The keys to finding the correct strategy will be calculating a sustainable level of income, planning cashflow and undertaking regular reviews

Advice on a long-term strategy for decumulation of a pension fund is crucial for most clients reaching retirement. It is the adviser's role to fully understand the client's needs and arrange a suitable strategy. At this stage, most clients will have paid off their mortgage or will be using some or all of the pension commencement lump sum to clear it. They may have some savings but in most instances will be looking to their pension for the vast part of their income in retirement. Only in exceptional circumstances would a client not take the maximum pension commencement lump sum. Unless it ...