7th July 2022

Canada Life: An increasing need for flexibility in retirement

Following the pandemic, Canada Life spoke to several advisers about the increased need for flexible retirement solutions for their clients. It became clear that the unprecedented experience of 2020 and 2021 had highlighted the importance of a flexible approach to retirement. Now as we progress into yet another uncertain year, we face a growing crisis around the rising cost of living, which throws up yet more concerns for those approaching or considering their retirement. 

So how can advisers ensure they are preparing their clients for the unknown in an ever-changing and uncertain world? 

The importance of flexible products 

In research undertaken by Canada Life* we found that nearly two thirds of advisers (63%) believe they have all the tools and products required to meet their client’s needs, but half (52%) believe that the industry has lacked innovation and new solutions. However, advisers also show hesitancy with only 56% feeling comfortable exploring and offering clients new products. 

Yet it is these new and innovative products that often offer the solution to the growing uncertainty around retirement planning. Advisers can no longer rely on a ‘one-pension’ fits all product. The traditional approach of using a single pension product and then changing as the client needs change is limited, especially when we consider that client’s are living longer and their health and mental capacity will deteriorate over time. What the market requires is a pension that will truly meet the needs of their clients over their retirement journey - be that drawdown, adapting into more secure income such as an annuities offer. These are the products of the future and are key to ensuring they can provide for their clients’ needs, no matter what the future may hold

Sean Christian, MD and Executive Director, Wealth Management Division at Canada Life, commented: 

“The ability of the industry and advisers to work together, in developing innovative solutions and advice, is what will enable us to collectively deliver clients long term financial plans. We’ve continued to develop our own retirement solution to respond to the challenges of providing clients with flexibility and certainty in any combination with the ability to de-risk through retirement journeys. For example, the Retirement Account allows advisers to drawdown in combination with taking a guaranteed annuity income.”

The Canada Life Retirement Account offers a flexible solution to the variable needs of the modern retiree and offers a range of over 2,000 funds, including Schroders and Trojan. It also offers a wide range of funds targeting ESG outcomes, with over 700 options rated 4 Globes and above by Morningstar’s sustainability rating. Not only does it offer a huge range of funds, but it also provides the ability for income to be turned on and off, adjusted and re-invested should the needs of a client change during their retirement. 

To help advisers understand the features of the account, Canada Life has launched the Bucket List campaign, which aims to highlight the opportunity for clients to take control of their ‘second life’ and how factors such as lifestyle, family, flexibility and certainty all have a role to play in decision making. Through various scenarios advisers can see how The Retirement Account can respond to the fluctuating needs of their clients during their retirement and help them to achieve their goals and ambitions.

More Infomation 

*Source: Research among 206 UK Independent Financial Advisers conducted by Opinium Research between 05-08 July 2021.

For Professional Adviser use only, Canada Life Limited, registered in England no. 973271. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Member of the Association of British Insurers. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Retirement