Commentary: The FCA’s Thematic Review of Retirement Income Advice

Kate Rainbow, Head of Key Accounts, comments on the publications of the FCA’s retirement income review.

20 Mar 2024

Rainbow coloured lightbulbs on a string at night.

Commenting on the outcome of the FCA’s Thematic review of retirement income advice and the need for advisers to take a more holistic approach to retirement advice, Kate Rainbow, Head of Key Accounts at Hymans Robertson Investment Services, says:

“One of the main things the review highlights is the need for advisers to ensure they have in place a clear advice model that is focused around the needs of their customers.

We believe that a holistic approach will be key. It will be important to ensure that the investment solutions IFA’s use are robust, for example to be able to evidence that they have been stress tested to account for a range of forward looking economic scenarios. Equally, it will be key to demonstrate an evidence and data led approach towards calculating and communicating personalised withdrawal rates, accounting for individual’s specific circumstance rather than relying on averages.

This, combined with customer focussed communications will put advisers in best position to avoid foreseeable harm, to deliver great outcomes and offer value for money.”