retirement planning drives demand for bespoke investment services
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Complexity in decumulation and estate planning a factor in driving increased use of bespoke investment services.
Almost all (97%) independent financial advisors surveyed expect demand to rise for bespoke portfolios managed by third party wealth managers, due to the increasing complexity of navigating issues around family inheritance, a new study has shown.
Research* from Rathbones Group, one of the UK’s leading wealth management firms, found advisers are finding it increasingly challenging to manage larger client portfolios, and deliver growth and tax efficiency to their clients, following changes to tax relief on pensions and estates.
Two out of three (65%) say portfolio management has become more difficult, with less than a third (29%) saying it has become easier. A contributing factor identified by the study is the growing complexity in decumulation strategies and estate planning because of last year’s Autumn Budget. Around 93% of advisers questioned say that it is driving increased interest in bespoke investment services.
Simon Taylor, Head of Strategic Partnerships and Platforms, Rathbones, said: “Changes in last year’s Budget to IHT are having a major impact on advisers and their clients with large investment portfolios, with advisers finding managing both growth and tax efficiency more challenging as a result. Furthermore, the FCA’s thematic review on retirement income advice, published in March 2024, is adding increased impetus for adviser businesses to think carefully about investment propositions for their clients, resulting in increased interest in bespoke services.”
Most advisers who offer bespoke investment services are more likely to do so for decumulation – around 59% questioned do so, while 41% are more likely to offer them during the accumulation phase. In terms of timing, the study found 39% are more likely to offer bespoke services to those clients approaching retirement while 15% do so for recently retired clients and 5% for those who have been retired for some time.
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Capital at risk. The value of investments and the income from them can go down as well as up and you may not get what you originally invested. Past performance is not a reliable indicator of future performance. The information contained in this release is based on our current understanding of HMRC tax regulations in the UK. Tax treatment depends on your individual circumstances and may be subject to change in the future. This information should not be taken as financial advice or recommendation. The registered address of Rathbones Group Plc is 30 Gresham Street, London EC2V 7QN.
Notes to Editors
• Rathbones commissioned independent research agency PureProfile to interview 100 UK IFAs and financial planners including 75 who currently offer bespoke investment management/discretionary fund management services.
• Rathbones’ bespoke investment management is an actively managed service backed by extensive research capabilities and designed to deliver consistent performance. By reacting quickly to changing market conditions, its advisers can help to protect and grow clients’ wealth.
• It is typically designed for clients that have £300,000 or more to invest. Rathbones Investment Committee and Asset Allocation Committee meet regularly to review and oversee the investment portfolio management process and the assets in which we invest.
For further information, please contact:
Madhu Kalia
Associate Director
Madhu.kalia@rathbones.com
07825 596302
Phil Anderson
phil@perceptiona.com
07767 491519