AJ Bell today launches an innovative retirement income solution to help financial advisers manage clients taking income in retirement. The AJ Bell Retirement Portfolio Service will be relevant for any clients requiring a sustainable income in later life and is available via SIPP, ISA or general investment account. It will be particularly attractive to those drawing an income under the pension freedoms.
The new service offers advisers a fully managed Centralised Retirement Proposition and is available, free of charge, via the AJ Bell Investcentre platform. Designed in conjunction with advisers from around the UK, the service combines four strategies designed to prolong the longevity of portfolios in decumulation, whilst minimising sequencing risk.
Sequencing risk can have an extremely detrimental impact on a portfolio if investments are sold at a loss. If investments are sold after a fall in value, the remaining funds need to work harder to make that loss up. This can be particularly damaging if those losses occur in the early years of retirement and can impair the longevity of the pension pot.