For three decades, William Bengen’s 4% rule has shaped how advisers and retirees think about sustainable withdrawals. Originally published in 1994, the rule suggested that a retiree could withdraw 4% of their portfolio in the first year (gross of fees), increase that amount with inflation, and reasonably expect their funds to last 30 years. But does that guidance still hold in 2026? Recent research and Bengen himself suggest it may no longer be the optimal starting point.
Article last updated 20 January 2026.
A more responsive, more flexible approach
Bespoke portfolios offer advisers the ability to respond quickly to market conditions and client needs. Portfolios can be built and adjusted in line with individual tax positions, income requirements and investment preferences.
Clients gain access to a wider investment universe – including direct equities, bonds, investment trusts, ETFs and AIM shares – and benefit from closer oversight through a named investment manager.
This flexibility and focus on personalisation is especially valuable in more volatile markets or when clients are navigating big life transitions like retirement, gifting or inheritance planning.
The research: commercial value and client satisfaction
Rathbones commissioned independent research with 100 UK IFAs and financial planners, including 75 who offer bespoke services. The results speak for themselves – 95% say profitability has improved, 97% report increased client capacity and 85% have seen stronger relationships since adopting a bespoke approach.
Clients notice the difference too. All advisers said clients were happy with the bespoke service, with 35% saying most clients are “very happy”. For advisers, it’s not just about better outcomes – it’s about stronger engagement and greater trust.
Bespoke means better conversations
Advisers using bespoke services report that client meetings are becoming more frequent and more valuable. Some 85% said they meet clients more often after introducing bespoke, with 19% seeing a dramatic increase in engagement.
These conversations go beyond performance. Advisers are spending more time discussing client goals, income needs and long-term planning, supported by investment managers who help clients stay informed and confident.
In a competitive market, these conversations help demonstrate value – and create the kind of trust that keeps clients close.
It’s also having an impact on portfolio outcomes. Some 89% of advisers say the risk/return profile of their clients’ portfolios has improved since adopting bespoke, with 29% reporting a dramatic improvement.
Investment choice is a key driver
Clients increasingly want more control over how their portfolios are invested – whether that means integrating ethical preferences, holding legacy assets or exploring specialist strategies.
All advisers surveyed said access to ETFs is a major reason for growth in bespoke, and over 90% also cited interest in investment trusts, AIM shares and direct equities. As investment choices broaden, so do client expectations.
Advisers also see growing interest in long-term asset funds and private market investments, particularly among high-net-worth clients. In this environment, a well-managed bespoke portfolio can help advisers meet those expectations without overstretching their own time or resources.
Bespoke investment management offers advisers a way to scale effectively, deepen relationships and stand out in a crowded market. It’s fast becoming a cornerstone of high-quality financial advice.
Sources
Rathbones commissioned the independent research agency PureProfile to survey 100 UK IFAs and financial planners, including 75 who currently offer bespoke investment management or discretionary fund management services.
