Reassuring your ‘at retirement’ investors that you are offering the most suitable investments for their appetite for risk

Considering the announcement by the Labour Party that they will be launching a pension commission to examine the current issues with the workplace and state pensions, including the pension freedoms act, this may raise concern amongst ageing investors about how they go about their wealth decumulation.

Gillan Williams
Author Gillan Williams
Date 3rd February 2017

Reassuring your ‘at retirement’ investors that you are offering the most suitable investments for their appetite for risk

Fortunately, our Decumulation Risk Tolerance Assessment will help alleviate concerns about how to accurately measure their willingness to take risk, and match their preferences to suitable investments. We calibrated this assessment specifically to the retirement market. The new questions will place the investor into a more relevant risk tolerance category than a standard risk tolerance assessment, which is set up for wealth accumulation.  As an investor approaches retirement, their attitude to risk is different, with their loss aversion becoming the most important aspect of their Risk Tolerance, as opposed to their focus on reward and growth This change in investment priorities, as well as the shorter time horizons, merit a more focused and accurate risk profiling process.

The assessment phase of the advice process is the ideal point to build on advisor’s relationship with the investor. Whilst conducting the assessment, they will learn about their knowledge and experience, risk capacity, intention for the investment and time horizon. The assessment will place the investor onto a risk scale relative their peers, as well as provide the necessary output for the Oxford Risk suitability analysis, mapping Risk Tolerance to suitable investment alternatives. .

Conducting a risk tolerance assessment is an FCA requirement, we built the original assessment to create a reliable, reassuring process which will help you offer the most suitable investments for your investors. The new decumulation risk tolerance assessment takes this a step further in providing the most suitable risk profile for pensions freedom focused investors on the market.


To get in touch for more information and a free trial of our decumulation risk tolerance assessment, click here


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