Five questions advisers must ask about decumulation - Thesis AM

Lack of innovation for solutions

Victoria McKeever
clock • 2 min read

Investing in pots for clients in decumulation is a growing trend among advisers but Thesis AM has said there are five questions intermediaries should ask themselves before opting for this approach…

Thesis Asset Management (Thesis AM) noted that to help mitigate the risks of decumulation - sequencing risk, market drawdown, volatility, pound cost ravaging, inflation and longevity - advisers are using a long-term pot which has a high level of risky assets to provide growth and a shorter term pot which can be relied upon to deliver the cash to meet regular withdrawals. The discretionary fund manager has previously argued and maintains that there has been a real lack of innovation in investment solutions for the retirement space. As a result, it said the pots approach looks attractiv...

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