Red flags raised in client decumulation risk assessments

Attitude to risk questionnaires could be unsuitable for decumulation

Jenna Brown
clock • 3 min read

More risk may be present in the client decumulation phase than advice firms currently factor into the planning process, according to a NextWealth report.

The research found a disconnect between attitude to risk questionnaires and client objectives during decumulation. The report, Risky Business: Dynamics at play in risk assessments and risk mapping, highlighted the associated problems that planners have to deal with. Findings from the report included that financial advisers expressed high levels of confidence in helping retired clients understand and manage various types of risk. It found nearly three-quarters reported being confident or very confident on each factor measured. However, it added that assessing sequencing and longevit...

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