Invesco has forged a strategic partnership with retirement specialist, Just Group, with the launch of a new retirement solution for advised clients to help meet the changing needs of those approaching or already at retirement.

In a statement today (3 June) the global asset manager said the announcement comes in the wake of the FCA thematic review of retirement income advice and at a time when millions of savers are looking for new ways to invest their money and protect their income as they move into the retirement phase of their lives.

"With people living longer than ever and in today’s challenging investment markets, there needs to be greater product innovation in retirement solutions - giving financial advisers flexibility when it comes to managing risks to income", it said.

The partnership will bring together the expertise of Invesco’s model portfolio service (MPS) and Just Group’s guaranteed income producing asset, delivered through its Secure Lifetime Income solution (SLI). Together they provide a differentiated retirement solution, offering advisers access to a robust and flexible new proposition aimed to meet the needs of modern-day retirees.

Invesco’s model portfolio service offers access to diversified growth portfolios alongside Just Group’s guaranteed income producing asset. The solution will provide uncorrelated guaranteed income whilst lowering the dependence on withdrawing income from a growth portfolio through retirement. SLI is designed to sit within existing pension drawdown arrangements (SIPP wrapper), helping advisers to mitigate key retirement risks, such as longevity, sequencing risk and unknown life events.

Kate Dwyer, head of UK distribution at Invesco, said: “With more of us set to live longer and spend more time in retirement, people need access to more innovative retirement solutions. Modern-day retirees need greater flexibility and options to ensure their savings are working as hard as possible for them. We believe Invesco can play an important role in driving innovation and supporting advisers when it comes to managing the risks to their clients’ income during decumulation.

The two propositions, currently only available separately, will work together to give advised clients the option to have the guaranteed income of a secured lifetime product whilst getting the potential growth benefits of a model portfolio, with the flexibility to reinvest the income they don’t immediately need. Our partnership aims to create better outcomes for people at retirement.”

Kavi Myladoor, retail retirement income director at Just Group, said: “The suitability of investment portfolios to support clients who are spenders, rather than savers, is in focus and under scrutiny by the conduct regulator. The needs of these clients and the investment risks they face are very different when taking an income and continuing to invest for growth. They need retirement focused investment solutions.”

“Combining a guaranteed income producing asset such as that delivered by our SLI solution with growth model portfolios, within the SIPP drawdown wrapper, has been shown to increase the probability of delivering higher long-term portfolio value, higher income and a more sustainable plan.

“We are delighted to work in collaboration with Invesco to offer a highly efficient and differentiated retirement income proposition to help deliver better client outcomes.”