Scenario modelling: Meeting the FCA's retirement expectations

Planning for retirement can be daunting. For many, it's a long-term process of organising their life's savings and investments to live comfortably after their career is over, making it a high-stakes decision. It is no surprise then that the Financial Conduct Authority's (FCA) recent Retirement Income Review made it clear that ‘We expect firms to illustrate the longevity of income in a variety of scenarios as discussed with the customer'. This fits under the broader directive from the Consumer Duty Act to ‘avoid foreseeable harm' and to help clients ‘make informed decisions'.  Careful ...