Aberdeen Adviser is expanding the investment options available within the new Aberdeen SIPP, giving financial advice professionals additional tools to manage liquidity, income and investment risk as retirement planning becomes more complex.
The updated SIPP investment range introduces three new options designed to support a wider range of retirement strategies:
1. Cash solutions within the SIPP through fixed term deposits and notice accounts, helping advisers manage liquidity and short-term income needs.
2. The Wesleyan With Profits Smoothed Fund, aims to provide steadier growth by smoothing day to day market volatility.
3. The Prudential Guaranteed Income Plan, offering options for guaranteed income, a maturity value or a combination of both.
Together, these additions aim to give advisers more flexibility when structuring portfolios for clients approaching or in retirement.
All three of these new options are able to work alongside and be complimentary to the wide range of MPS available on Wrap including the Aberdeen MPS range.
We have entered a new era of complexity in retirement planning. Alongside clients living longer, retirement itself is often phased rather than a single event, advisers increasingly need portfolios that support both income and long-term growth and the challenges of changing regulation.
Managing sequencing risk during drawdown has also become a central consideration.
Aberdeen Adviser says the expanded SIPP investment range is designed to support those evolving planning needs.
More options for managing liquidity and income
The new cash solutions allow advisers to place client money into fixed term deposits and notice accounts directly within the Aberdeen SIPP.
These options are integrated on the Wrap platform, available to clients in drawdown and protected by the Financial Services Compensation Scheme within applicable limits.
For advisers building retirement portfolios, holding cash within the pension wrapper can support short term liquidity planning.
It can also help separate near term income needs from longer term investments, which can be important when managing sequencing risk during periods of market volatility.
Alongside the cash deposits, the SIPP now provides access to the Wesleyan With Profits Smoothed Fund. The fund invests across a diversified portfolio and aims to moderate day to day market volatility by smoothing returns over time.
The approach is designed to support steadier growth for investors over the medium to long term.
Advisers can also access the Prudential Guaranteed Income Plan. This provides options for guaranteed income, a maturity value or a combination of both. Income payments are returned to the SIPP, allowing advisers to incorporate them within a wider retirement income strategy.
Supporting advisers as retirement planning evolves
Verona Kenny, Chief Distribution Officer at Aberdeen Adviser said: “We have entered a new era of complexity for retirement planning.
“Clients often move through several stages where their priorities change, whether that is drawing income, preserving capital or maintaining flexibility.
“That means advisers need access to a broader range of investment tools inside the pension wrapper.
“Being able to combine liquidity solutions, smoothed investments and guaranteed income options in one SIPP can help advisers structure portfolios around those different phases.
“Managing sequencing risk and building sustainable income strategies are now core parts of retirement advice.
“Having more ways to balance income, cash reserves and long-term investments can help advisers build more resilient retirement plans.”
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