MARKETS & INVESTING
The 4-Life framework : Building blocks for creating a personalised retirement plan
This marketing material is for professional clients only , and is not for consumer use .
Georgina Taylor Head of Multi-Asset Strategies , UK
Kate Dwyer Head of UK Distribution
There is a seismic shift underway in the UK pensions market , with responsibility for retirement moving from employers to individuals . The issues may be well known , but they are difficult to solve for – especially given the intensely personal nature of retirement and how to fund the lifestyle and legacy each client wants to build . To help solve these challenges , Invesco has created the 4-Life framework , designed to drive better outcomes for retirees .
What is the 4-Life framework ?
By dividing the retirement journey into four manageable building blocks , the 4-Life framework helps individuals prioritise and achieve their own specific retirement goals – and it helps financial professionals better frame what products and solutions can best serve the needs and aspirations of all retirees . A full exploration to the framework is available here , including detailed examples of how each building block may be managed for different client personas . Below , we highlight a few client needs and investment implications within each category to consider as a starting point .
1 . Life events : Cash is king , but not forever
• Client needs : Life events can include anything from weddings to births to health issues . Holding an easily accessible cash buffer reduces the stress of paying for these events . It also introduces the need for a longer-term plan to manage this cash . After all , holding cash provides comfort , but holding too much cash could mean a person ’ s savings do not last long enough – especially if that cash is earning a low rate of return in a bank account .
Source : Invesco
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