The demographic shift that’s hitting the financial services sector has been well documented and discussed.
But Lukasz de Pourbaix, Lonsec Investment Consulting general manager, says that despite increased awareness of the investment issues relating to retirement, there are no real practical adviser solutions in the market.
“With over 5.5 million baby boomers in Australia approaching retirement, there will be an increased need to align portfolios to retiree needs and objectives, which in many instances will differ to those in the accumulation phase of an individual’s investment lifecycle,” says de Pourbaix.
“We hear about it everywhere – an increasing number of Australians facing retirement and with that brings new investment strategy and investment challenges. However, no one has been working to provide a practical solution for financial advisers to deal with some of these challenges.”
Lonsec has therefore decided to team up with global actuarial and consulting firm Milliman to launch a retirement website with a solutions model.
The solutions module has three components focused on providing practical portfolio solutions for financial advisers.
The first component is a retirement portfolio construction guide, which details the financial planning process and provides a practical guide for constructing an implementable objectives-based portfolio. The second is an approved product list that spans a broad range of quality financial products researched by Lonsec, linking directly to Lonsec’s research reports.
“The third feature is the Lonsec Retirement Lifestyle Model Portfolios, which have been constructed using an objectives-based approach with consideration given to those objectives and risks most relevant to retirees, says de Pourbaix.
The website also provides a research module and industry panel.