Our July Parameters Survey suggests the paraplanners we surveyed increasingly see advisers taking a joined-up approach to accumulation and decumulation. The findings also show that multi-asset funds continue to play an important role after retirement, supporting portfolio continuity as clients move into drawdown.
For many years, accumulation and decumulation have been viewed as distinct phases of the advice journey. One focused on building wealth, the other on generating an income from it.
However, the results of our latest Parameters Survey suggest paraplanners are seeing advisers take a more connected view.
When asked to what extent the advisers they support consider accumulation and decumulation as connected rather than separate stages, 78% of respondents said they are either fully integrated (36%) or mostly connected (42%). Just 9% said they are largely or completely separate.
The findings suggest that, retirement is increasingly being viewed as a continuation of the financial planning process rather than a point at which a completely new strategy is required.
One respondent commented that there is “a definite path between accumulation and decumulation”, with retirement discussions taking place well before clients stop working. Another highlighted the importance of considering “the whole journey for the client”.
That said, respondents also recognised that retirement changes the investment conversation. Several noted that a client’s capacity for loss may alter once earned income stops, while others pointed to the FCA’s Retirement Income Review as prompting firms to revisit their approach to post-retirement investing.
Multi-asset funds continue into retirement
The survey also explored how multi-asset funds are used in decumulation portfolios.
The results suggest they remain firmly within retirement planning. More than a third of respondents (38%) said multi-asset funds are frequently used as a core decumulation solution, while a further 45% said they are typically used alongside other structures.
Only 10% reported that they are rarely used or not used at all.
Several comments suggested that the same multi-asset solutions used during accumulation often continue to play a role after retirement. One respondent noted that the fund solutions used “tend to be the same for both stages of the client journey”, while another said a multi-asset approach remains central to their firm’s retirement proposition.
For many firms, the appeal appears to lie in maintaining a consistent investment approach while adapting portfolios to changing client needs.
Managing the challenges of drawdown
While growth remains important in retirement, respondents made clear that drawdown brings additional considerations.
Sequencing risk emerged as a recurring theme, with several paraplanners highlighting the need for steadier returns once clients begin taking withdrawals.
One respondent described sequencing risk as their “main challenge in retirement”, adding that multi-asset funds are well suited to helping mitigate its effects. Others pointed to the need for consistency when clients are relying on investments to support spending over the long term.
At the same time, respondents were careful not to present multi-asset funds as a solution for every client. Some firms use them alongside MPS solutions, gilts, structured products or dedicated retirement portfolios.
The survey findings suggest that paraplanners increasingly see accumulation and decumulation as part of the same journey. Multi-asset funds appear to be one of the tools helping advisers navigate that transition, providing continuity while allowing portfolios to evolve as clients’ needs change.
Main image: background, multi, colour, tile, andrew-ridley-jR4Zf-riEjI-unsplash
