New research from NextWealth sponsored by Brooks Macdonald finds that while only 56% of financial advisers say they have a Centralised Retirement Proposition (CRP), the majority are already delivering many elements of a consistent retirement approach – a “Consistent Retirement Playbook”.
The research, based on a survey of more than 220 financial advice professionals, shows that just over half of advisers report having a formal CRP, and far higher proportions of advisers already have key elements of a consistent retirement approach in place.
These findings suggest that many firms already operate a Consistent Retirement Playbook, even if it is not formally labelled as such.
- More than four in five (83%) have a consistent method for assessing client risk in retirement
- 79% have an agreed review cadence for retirement clients
- 76% have a documented approach to assessing retirement income needs
While adoption of CRPs has increased, 34% of advisers say they have no plans to introduce one. However, the research suggests many firms refer to their CRP by a different name, rather than reject the underlying principles of a consistent, firm-wide approach.
External factors are also prompting firms to reassess their approach. Upcoming changes to inheritance tax treatment of pension assets are acting as a catalyst for greater alignment within advice firms. For many, this is accelerating the move towards documenting and formalising existing practices.
To support firms in navigating this shift, NextWealth and Brooks Macdonald have published a new guide, The CRP You Already Have. The guide aimsto help firms identify the elements of a consistent retirement framework they already have in place, highlight potential gaps, and provide a practical framework for strengthening their overall proposition. You can find the full guide here.
Neil Cowell, Group Director of Investment Management and Distribution at Brooks Macdonald, said:
“As a firm who has worked with Independent Financial Advisers for 35 years, Brooks Macdonald was pleased to sponsor this research which reflects what we hear from advisers: many firms are already delivering a consistent retirement approach but call it by a different name. The Centralised Retirement Proposition has become a Consistent Retirement Playbook.
The playbook offered by this new guide with NextWealth provides a simple framework for advisers to modify and adapt, reflecting client needs, and enables them to draw out additional opportunities for clients regarding retirement propositions.
In addition to the guide and as retirement planning becomes more complex coupled with uncertain times and fears of inflation, Brooks Macdonald can support advisers and their clients through our Retirement Solutions which address key risks of sequencing, longevity and inflation and bring clarity, choice, and confidence.”
Heather Hopkins, CEO of NextWealth, said: “Five years of tracking CRP adoption has taught us one thing: most advice firms are doing far more than they give themselves credit for. The data from this research, carried out in partnership with Brooks Macdonald, is clear – the retirement playbook already exists in most firms. It lives in their house view, their minimum expectations, their client advice procedures. It just hasn’t been brought together in one place or called a CRP.
Our aim with this guide is entirely practical. We want to help firms see what they already have, identify where the gaps are, and give them the tools to close them, not to impose a bureaucratic framework, but to build the quiet confidence that comes from knowing your firm has this covered.”
