Given all the forces that threaten a good client outcome, being able to deliver a stable and predictable level of income is understandably going to be a challenge.
 

Not only that but people are, generally speaking, living longer lives. This means advisers not only need to find a way to manage the ongoing market and economic uncertainty, but you also build an income strategy that can deliver whatever your clients need for however long they need it.

 

Life expectancy: a stern test for income sustainability

On average, a portfolio life for a client with modest drawdown is 25 years. However, you may need to plan on the probability of living much longer – perhaps 35 years or more in retirement – particularly if you are a non-smoker in excellent health - to help avoid financial hardship in your later years.

  • 61-year-old male

    Average life expectancy age: 84

    1 in 4 chance of living to age 92 and 1 in 10 chance of reaching 96

  • 61-year-old female

    Average life expectancy age: 87

    1 in 4 chance of living to age 95 and 1 in 10 chance of reaching 99

Source: Office for National Statistics, 2025

 

Volatility drag and the importance of good timing

Volatility drag, sequence of returns and ongoing income withdrawals can all play a major deciding factor how sustainable your client’s retirement income is likely to be. As we’ve shown here, these elements can all work together to significantly derail the withdrawal strategy you’ve put in place as well as your client’s expected lifestyle in retirement.

What do clients want from their pension savings?

Right now, our research shows that the vast majority of clients hope to enjoy both financial certainty and income flexibility in retirement. If advisers are to help deliver the best of both worlds, hybrid retirement income solutions could be the way forward for most.

  • 94% of advised clients want a guaranteed income for life when they come to retire 

  • 92% of advised clients say they want to be able to access their pension savings flexibly

Source: Standard Life, Retirement Voice, 2024

 

Explore related content

  • What is the Retirement Zone?

    Discover why the years just before and after retirement are of significant importance for your clients - and their plans for the future.

  • Changing client attitudes and objectives

    As clients near retirement, their risk appetite can change - but what does that mean for your advice conversations?

  • How do you manage market and economic uncertainty?

    Why are clients in the Retirement Risk Zone particularly sensitive to economic and market volatility?

Money invested is at risk. Tax may change in the future. 

The information on this site is for qualified financial advisers and must not be relied on by anyone else. If you are not an adviser please go to our customer website for more information about our products and services.