Sarasin & Partners has launched a range of retirement income strategies.
The strategies include two approaches, Natural Income and Structured Decumulation which will be managed within Sarasin’s model portfolio service.
Their aim is to help clients generate income in retirement while preserving capital amid changing market conditions.
Christopher Cade, head of UK sales at Sarasin & Partners, said: “As more individuals transition from the wealth-building accumulation phase into the income generating decumulation phase, the challenge becomes drawing a sustainable income while preserving capital.
“Leveraging our experience of building MPS portfolios, these new strategies are designed to provide longevity risk mitigation, consistency in income and help preserve wealth for beneficiaries.”
The Natural Income strategy draws only from income generated by the portfolio through dividends and interest, targeting a yield of 3 to 4 per cent per annum, while keeping capital invested.
While the Structured Decumulation strategy aims to provide a steady income in retirement by utilising three separate ‘pots’ with varying time horizons.
It combines short-term cash reserves, medium-term fixed income and real assets, and long-term income producing equities.
alina.khan@ft.com
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