Multi asset funds most suitable for generating post retirement income – Barings

Baring Asset Management (Barings) has conducted a survey among 106 independent financial advisers. It finds out that over half of IFAs (56%) believe that multi asset funds are the most suitable for people post-retirement looking to generate an income over a 20 year retirement.

Other findings show that around 54% of financial advisers surveyed assess that last April’s pension reforms, whereby savers aged 55 and over could cash in on their defined contribution pension funds, will give more sense to multi asset funds for people post-retirement.

Also over a quarter (28%) of IFAs believe that a single multi asset income fund is more suitable than multiple income funds across asset classes for people post-retirement looking to draw a retirement income.

Multi asset funds have been ranked as the most popular default funds for non-retired people approaching retirement, cited by 71% of IFAs according to Barings’ research. Two in five IFAs reply that multi-manager funds top the list while 20% answer it is diversified growth funds.

Most of IFAs (87%) surveyed highlight charges as the most important factor when assessing the suitability of a drawdown retirement income fund for generating a post-retirement income.

Sonja Laud, head of Multi Asset Income at Barings, commented : “As people live longer, being able to drawdown income post retirement becomes more and more important. Our research has clearly demonstrated the value that IFAs place on multi asset funds and in particular the levels of income they can provide post retirement.”

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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