In times of uncertainty…where to turn?

clock

Recent market uncertainty has seen extreme volatility in investment markets over the last few years.

Many observers anticipate sustained periods of low or negative growth globally for years to come and this has been escalated by the debt problems being encountered by many countries within Europe.

These economic concerns make pension investing more uncertain - but some investors with long term horizons or a more adventurous attitude to risk may be willing to accept these risks in the hope of upturns in the future.

But what about clients approaching retirement or with a more cautious attitude to risk? Falls in their retirement funds could force them to consider 3 options for their retirement planning:


- Increase payments to their pensions plans
- Defer their retirement until later
- Accept lower retirement benefits


None of these options are appealing to customers who have been saving for their retirement.

Is there any alternative?...
Whilst the safety of cash investments may attract some clients, with inflation running at over 4% and base rates at 0.5%, cash returns are losing value on investments in real terms.

All this doom and gloom and there seems no viable solution to offer your clients. With-Profits Funds could offer a credible solution for investors who are unable to expose their fund to too much risk. A multi-asset investment approach, which offers smoothed returns with an established track record.

Many happy returns
Prudential offer one of the largest and financially strongest With-Profits Fund in the UK. Regular bonuses have been paid out to Flexible Retirement Plan customers every year since its launch in 2005, giving positive returns for clients, which many other funds have been unable to provide.

Prudential also offer PruFund Funds which also invest in the With-Profits Fund. These funds apply similar principles to the With-Profits Fund, multi-asset investments, smoothed returns and they declare an Expected Growth Rate so you and your clients can see the expected level of returns.

Prudential also offer a range of Risk Managed PruFund Funds with varying equity content, to suit different risk attitudes. For clients who need total security we can offer a range of optional guarantees through the PruFund Protected Growth & PruFund Protected Cautious Fund.

When to suffer the pain of realising losses?
At recent client reviews, you may have had to painfully explain the recent falls in their pension fund values - but Prudential's investment solutions could offer an alternative for stable returns and the option of guarantees to protect some or all of their pension fund.

Stable investment returns could give greater security for retirement planning and also help to protect your income levels for trail commission payments, so Prudential's With-Profits Fund & PruFund investment choices could provide benefits to you and your clients.

Find out how Prudential's investment solutions could help retirement planning in volatile times by visiting http://www.pruadviser.co.uk/security

More on Economics / Markets

Industry positive British economy will improve by this time next year

Industry positive British economy will improve by this time next year

‘We finally have the much-needed certainty to move forwards’

Isabel Baxter
clock 16 July 2024 • 2 min read
UK election high on clients' radars as impact on finances is flagged

UK election high on clients' radars as impact on finances is flagged

Majority of advisers have been asked by clients about the financial impact

Isabel Baxter
clock 13 June 2024 • 1 min read
Inflation and financial planning — focusing on the bigger picture

Inflation and financial planning — focusing on the bigger picture

Well-informed advisers can better guide their clients through turbulent times

Adam Leci
clock 07 June 2024 • 5 min read

In-depth

The Adviser Incubator: Meet graduate Rebecca Penny

The Adviser Incubator: Meet graduate Rebecca Penny

An inside look at The Verve Foundation’s programme

Hope Coumbe
clock 12 July 2024 • 6 min read
Navigating a digital minefield: Advisers on dealing with fraud

Navigating a digital minefield: Advisers on dealing with fraud

With fraud on the rise, IFAs share how they are combatting the threat

Sahar Nazir
clock 11 July 2024 • 7 min read
PA Awards 2025: Nominations for all categories now open!

PA Awards 2025: Nominations for all categories now open!

Our 20th anniversary awards will be held in London next March

Professional Adviser
clock 17 July 2024 • 2 min read