UK Retirement: Are Consumers Over Confident?

23 March 2023

ConsumerGatekeepersInflationInvestmentsMarket TrendsMeeting of MindsRetirement

Expert: Philip May - Director Capital Group Facilitator: Don Wild


  1. Capital Group have assessed a £500billion opportunity over the next decade in the Drawdown Market. To meet the needs of this market, a greater focus will be placed on investment solutions to help provide answers, which are currently relatively under developed in this part of the market
  2. NMG research have been employed to provide comprehensive frontline research from both customers/clients and financial advisers. This quantitative and qualitative research will assist in identifying the current and future issues and possible solutions
  3. Current market volatility and inflation are key concerns, as people start to focus more on whether their portfolios are fit for the future
  4. Advised people are unsurprisingly more informed, and potentially able to navigate the market turmoil more effectively
  5. The conventional ‘4 pots’ approach to managing income in retirement, is not at the foremost of minds and a more flexible approach may be more appropriate

Discussion points:

For adviser firms specifically, only 30% of advice firms use a Centralised Retirement Proposition (CRP) currently, although many firms are using a similar portfolio to the CIP while employing a different risk rating.

Flexible income options still pre-dominate. While annuity options are increasingly part of the discourse there is still not a big take up in annuities.

Demand for MPS and multi-asset solutions are increasing and will be a growing solution for future income needs.

Key takeaways:

  • There are unrealistic client expectations on what can be achieved, in regards to income, in a higher inflation and volatile period which is a concern
  • The potential solution is an active, dynamic, target-date solution which can help provide a guide path through retirement
  • The session provoked some debate and thoughts on how financial advisers and planners will help advise and guide this growing cohort of clients