This helps lower the risk of significant fluctuations in value in the run-up to the CIP to CRP transition, mitigating against volatility drag, and can help to reduce sequencing risk during decumulation.
Remember that clients’ solutions can be blended and wrapped up with other funds and products in a CIP or CRP to help balance overall risk and reward.
With-profits funds can be an important part of the puzzle if there are clients approaching retirement or planning to access their pension or Isa savings in the next five to 10 years.
That should be enough time to see the benefit of an investment proposition product that for the first time is available via independent platforms and for some reason has retained a pretty low profile in the past.
In 2023, I think it is time for a smoother journey.
Nick Henshaw is head of intermediary distribution at Wesleyan Assurance Society
