Richer ageing population fuels rising demand for tailored investment support
A study of financial advisers across the UK reveals that they expect the number of people with investable assets of more than £250,000 to grow over the next three years, rising from, on average, one in five (21%) to one in four (25%) of their clients. Investable assets of £250,000 or more is generally the threshold for clients to be offered bespoke investment management services.
The research also found that more than half (52%) of those offered tailored support are aged between 50 and 55 and just 15 per cent under 50, highlighting the late stage at which many people approaching retirement are accessing personalised investment support. The study demonstrates that as more people plan for retirement with larger portfolios, there is rising need for active management services to help them fund their retirement in the most effective way.
Recent data from the Pensions and Lifetime Savings Association** (PLSA) showed the cost of a comfortable retirement passed £60,000 for the first time, highlighting the importance of detailed retirement income planning. The PLSA found that the amount of income needed for a comfortable retirement for a single person household is £43,900 while for a two-person household it is £60,600. It estimates the two-person household would need a pension pot of between £300,000 and £460,000 while the single person household would need £540,000 to £800,000.
Recent guidance from the Financial Conduct Authority*** (FCA) set out best practice and areas of focus for firms giving retirement income advice, stressing the need for high quality of record keeping, fact finding and awareness of clients’ attitude to risk.
“There is increasing concern among many people in later life that, with the tax burden rising and the economy under pressure, they may not be able to afford the retirement they’d hoped for,” said Simon Taylor, Head of Strategic Partnerships, at Rathbones.
“Delivering the right support to people with many different assets and ambitions is complex and challenging, which is why a bespoke approach to investing helps advisers best protect and grow wealth so clients can enjoy their later years.”
The FCA highlights in its recent guidance that the risk tolerance of a client in decumulation can be inherently different from when they are saving for retirement and that firms should assess capacity for loss and attitude to risk consistently to help identify suitable solutions for their clients.
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.
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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
*** Retirement income advice: good practice and areas for improvement | FCA
Rathbones
Hugh Morris
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press@rathbones.com
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About Rathbones
Rathbones Group Plc (Rathbones), through its subsidiaries, is one of the UK’s leading providers of investment management services for individuals, charities, trustees and professional partners. This includes discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services. Rathbones manages £104.1 billion of assets (as of 31 March 2025), of which £15.4 billion is managed by Rathbones Asset Management Limited (as of 31 March 2025). Rathbones has over 3,500 people across UK locations and the Channel Islands.