Decumulation: Is this the most important risk profile advisers will ever do?

DECUMULATION

Carmen Reichman
clock •

Using the same risk-profiling tools for the process of wealth accumulation and drawing a retirement income is a dangerous game. Carmen Reichman finds out how advisers deal with decumulation...

Advisers know the staggering differences between client needs at accumulation and decumulation, but does this always translate to risk-scoring? To ‘fudge' an attitude to risk score based on an accumulation advice model into a retirement income plan would throw up problems that could be incredibly hard to rectify, according to one stakeholder. Moody's Analytics head of retail product and advisory Philip Mowbray said that, given the late stage in the investment cycle, the risk-return approach typical of most tools would be inappropriate. Instead, advisers need to be able to focus on cli...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

High performing advice firms generating 16% more revenue

High performing advice firms generating 16% more revenue

Dimensional Fund Advisors reveals

Sophia Panayi
clock 08 October 2026 • 2 min read
This time: 'A drastic fiscal situation may necessitate drastic action'

This time: 'A drastic fiscal situation may necessitate drastic action'

'This time it feels like something significant may happen'

Chris Jones
clock 08 October 2026 • 5 min read
Holistic advice is the 'key' to disability support

Holistic advice is the 'key' to disability support

Accessibility issues to advice remain

Sophia Panayi
clock 07 October 2026 • 3 min read