Sequencing risk catalyst for adviser adaptation, research finds

clock • 2 min read

Clients are increasingly concerned about their future income in retirement, as sequencing risk becomes more prevalent, a wide-ranging survey has found.

The survey of 200 adviser firms by Ascentric and NextWealth found that the increasing occurrence of sequencing risk has driven a trend of advisers adopting new practices. Namely, advisers were able to show how their withdrawal strategy helped buffer their clients against the impact of market volatility. An overwhelming number of advisers had recommended a cash buffer to retirement clients, with 91% utilising the strategy. The survey also revealed that 39% of advised clients have a secure income to cover basic needs and while only 33% of advisers recommended an annuity to clients who d...

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