Effective retirement planning a key challenge for industry
The need for an advice-driven solution when it comes to retirement planning is vital in an industry anchored to accumulation thinking about the world, according to Lonsec's head of investment consulting, Lukasz de Pourbaix.
Speaking at the Lonsec Adviser Roadshow, de Pourbaix said the current disconnect between investor goals and risk profiling needed to be bridged.
The message conveyed to the roadshow delegates was that advisers and investment managers needed to review existing attitudes to retirement planning if they are to effectively meet the financial needs of the steadily ageing cohort of baby boomers.
A goals-based approach, along with clearer measurement around the likelihood of achieving objectives, can assist in managing client expectations and personalising the investment strategy to client goals, de Pourbaix said.
That retirement strategies should not be a one-size-fits-all solution was a point also highlighted by Jeremy Pree, Lonsec's general manager for business development.
He said while income was a key requirement in retirement, many retirees would still require a growth option to ensure a retirement income to sustain them through longer life expectancies.
Milliman practice manager Wade Matterson said the existing analytical approaches were overly simplistic, did not measure risk adequately and had the potential to draw incorrect conclusions.
To be effective, he said, the adviser toolkit needed to include the concept of ‘risk buckets' in its framework.
AUTHOR
Milana Pokrajac
Recommended for you
With HNW investors representing the largest market for alternative assets, Praemium and CoreData research underscores why this presents a compelling opportunity for advisers.
Having completed the successful integration of Diverger, Count has upgraded its forecast for expected synergy benefits achieved by the acquisition by a third.
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
Iress has increased its forecast adjusted EBITDA by $5 million for the 2023/24 financial year in light of the sale of its platform business to Praemium and hinted at a return to dividend payments.
