Quilter Cheviot, the arm of wealth manager Quilter focusing on high-net-worth clients, has launched a new personalised decumulation offering, called the 'Tailored Income Service'.

The new offering will be based on Quilter Cheviot’s discretionary portfolio service models, which will be selected depending on the client’s risk profile, capacity for loss and objectives. The investment manager will tailor the portfolio to the client’s exact needs.

The minimum investment for the new decumulation offering will be £500,000, and Quilter Cheviot said the charges are "in line" with its existing discretionary portfolio service.

The tailored approach will see the investment manager select one, or a combination, of three core approaches:

  • A dynamic and actively managed two-pot approach, with a short-term income reserve portfolio to meet regular and unexpected expenses, alongside a growth portfolio, to allow the majority of the assets to grow and provide longevity.
  • A natural yield strategy where income is generated from dividends and interest, providing clients with a steady income stream without the need to sell investments, thus helping to preserve capital.
  • An encashment approach, where income can be taken flexibly and in a personalised manner by selling down investments in a way that works with the client’s spending and according to the desirability of maintaining specific holdings

Quilter Cheviot said it has chosen a more personalised option for its decumulation to reflect the increasingly unpredictable nature of people’s lives and retirements.

Caroline Simmons, chief investment officer at Quilter Cheviot, said: “Traditional ‘off-the-shelf’ retirement income solutions, often built around static withdrawal rates, cannot account for the realities of market volatility, evolving regulation, or the nuances of individual client objectives.

"Our tailored approach – whether that is through two-pots, natural yielding strategies, simple encashment or a combination of those – is designed to adapt to these complexities, ensuring a more confident, resilient and personalised retirement."