Your clients are living longer. Fifty years ago, people could expect to spend approximately 13 to 18 years in retirement. Today, many clients may need their savings to last 20 to 30 years, or longer.
Retirement therefore presents a different investment challenge. Clients need income today, but they also need their capital to keep working for the future.
A strategy that focuses too heavily on capital preservation may fail to keep pace with inflation, while one that focuses too heavily on growth may expose clients to damaging market falls at the wrong time.
A robust retirement strategy needs to address three key risks:
Our solution repurposes our existing track record and expertise.
We strike the balance by blending:
Our MPS mandates, which are responsible for addressing longevity and inflation risk with; our Enhanced Short Duration Bond Fund that provides a stable source to meet regular withdrawals.
"By creating a dedicated 5th building block designed to give consistent long-term, low-volatility returns, our Retirement MPS aims to reduce the need to sell growth assets during periods of market stress."
