Invesco has partnered with Just Group to roll out a new retirement product for advisers called the Invesco and Just Retirement Solution.
The firm said the ‘innovative’ product combines Invesco’s investment management expertise with Just Group’s focus on retirement to offer clients security of income and greater flexibility throughout their retirement.
A strategic partnership between the two firms was announced in June, and since then they have been working with investment platforms and risk-rating agencies on bringing the product to market.
The retirement product combines model portfolios with Secure Lifetime Income (SLI). The firms said that typically, a decision to allocate to guaranteed income becomes separated from what happens to the rest of an individual’s portfolio.
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With this new offering, the models have been designed with the guaranteed income component in mind to achieves a better retirement experience for investors and greater ease of use for the adviser, the firms said. The model portfolio and SLI, unlike an annuity, are both housed inside a SIPP wrapper on the platform.
The product can be tailored to client risk appetite and income requirements. It is risk-rated by Dynamic Planner.and is available to advisers via the 7IM platform, with further platforms coming soon.
Kate Dwyer, head of UK distribution at Invesco, said: “With people living for longer, there is a need for greater flexibility to manage risks and generate income. Combining traditional investment portfolios and guaranteed income in a holistic way can yield a better outcome than an approach which simply bolts the two together.
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“By thoughtfully considering both components and how they complement one another upfront, a solution can be created that is greater than the sum of its parts. Through the partnership with Just Group we have managed to achieve just this.”
Kavi Myladoor, retail retirement income director at Just Group, added: “We have worked with Invesco to combine a guaranteed income producing asset, delivered by our SLI solution, with Invesco’s model portfolios in a highly efficient, flexible and differentiated way.
“The development of a purpose-built solution that combines both elements and can be held within the SIPP drawdown wrapper has been shown to increase the probability of delivering higher long-term portfolio value, higher income and a more sustainable plan. It gives both advisers and their clients confidence they can navigate successfully the financial challenges of retirement.”
