Majority of financial advisers delivering ‘consistent retirement playbook’

The centralised retirement proposition (CRP) for advisers has been labelled as a “consistent retirement playbook” by NextWealth.

New research from NextWealth, sponsored by Brooks Macdonald, found that while only 56 per cent of financial advisers said they have a CRP, the majority are already delivering many elements of a consistent retirement approach.

NextWealth’s research was based on a survey of more than 220 financial advice professionals and showed that while just over half of advisers reported having a formal CRP, far higher proportions of advisers already have key elements of a consistent retirement approach in place.

More than four in five (83 per cent) advisers said they have a consistent method for assessing client risk in retirement, while 79 per cent have an agreed review cadence for retirement clients, and 76 per cent have a documented approach to assessing retirement income needs.

While adoption of CRPs has increased, 34% of advisers say they have no plans to introduce one.
However, NextWealth noted that its research suggests many firms refer to their CRP by a different name, rather than reject the underlying principles of a consistent, firm-wide approach.

As part of the research, NextWealth and Brooks Macdonald have published a new guide which aims to help firms identify the elements of a consistent retirement framework they already have in place, highlight potential gaps, and provide a practical framework for strengthening their overall proposition.

“The CRP has become a consistent retirement playbook,” commented group director of investment management and distribution at Brooks Macdonald, Neil Cowell.

“The playbook offered by this new guide with NextWealth provides a simple framework for advisers to modify and adapt, reflecting client needs, and enables them to draw out additional opportunities for clients regarding retirement propositions.”

NextWealth CEO, Heather Hopkins, added: “Five years of tracking CRP adoption has taught us one thing: most advice firms are doing far more than they give themselves credit for. The data from this research, carried out in partnership with Brooks Macdonald, is clear – the retirement playbook already exists in most firms.

“It lives in their house view, their minimum expectations, their client advice procedures. It just hasn't been brought together in one place or called a CRP.

“Our aim with this guide is entirely practical. We want to help firms see what they already have, identify where the gaps are, and give them the tools to close them, not to impose a bureaucratic framework, but to build the quiet confidence that comes from knowing your firm has this covered.”

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