PIMCO has made its Retirement Income model portfolio service available to UK financial advisers.
There are three multi-manager models in the range, designed to give advisers a ‘practical investment framework’ for balancing income, long-term growth potential and risk.
They are Conservative, focused primarily on generating income while seeking to preserve capital, Balanced, which seeks income and longer-term capital growth, and Moderate Growth, designed for greater equity exposure and growth.
The firm said with the number of UK pensioners expected to increase by 14% by 2035, the launch comes at a time when more people move from accumulating wealth to drawing an income from it.
Simon Hillenbrand, head of global wealth management UK at PIMCO, said: “Retirement income is becoming the next frontier of financial advice. For decades, advisers have focused on helping clients build wealth.
“Increasingly, the challenge is how to convert that wealth into an income that can support them through potentially decades of retirement.
“We believe this requires a distinct investment approach, combining disciplined portfolio construction with a clear understanding of risks that grow in importance once clients start drawing an income,” he continued.
“Retirement is fundamentally different from accumulating wealth. We see a compelling opportunity to help UK advisers strengthen their retirement propositions by bringing what we have learnt in the US to the UK.”
See also: FCA reveals 320k pensions saw withdrawals of 8% plus last year
