Today’s retirement income landscape is more complex than ever – both for advisers and clients alike. Brooks Macdonald‘s Andrew Bennie and Dan Thompson explain how tailored, risk-aware strategies can help advisers turn uncertainty into lasting client confidence and effective financial planning.
Planning for retirement has always been a critical part of long-term financial wellbeing – but in today’s environment, it’s more complex than ever.
Market conditions are becoming more difficult to manage. The recent tariff turmoil and heightened geopolitical tensions are unsettling even the most experienced of clients. Interest rate expectations are shifting, the inflation outlook remains uncertain and desired assurances as retirement gets ever nearer appears to become only more difficult to obtain.
At the same time, clients are living longer, meaning income strategies need to support sustainable withdrawals over extended periods. The regulatory environment too has become more complex, with the FCA bringing greater scrutiny to advisers and their chosen client centralised retirement proposition which in turn has prompted a greater focus on the robustness of retirement planning processes.
For advisers, these trends are converging to create a new set of challenges. Not only must they stay alert to evolving expectations and ensure their strategies remain compliant, but retirement income planning must also be more resilient, more adaptable, and more personal. In short, the one-size-fits-all approach no longer fits.
A more demanding retirement income environment
Traditional retirement income models may not always be capable of delivering in this new era of trade wars and heightened uncertainty. Advisers increasingly need investment partners who can help build strategies that support both short-term income delivery and longer-term resilience.
At Brooks Macdonald, we work with advisers to design retirement income strategies that are both personalised to each individual’s needs, and which are also underpinned by a risk management framework that ensures consistent outcomes. Across our decumulation approach, we help address three of the most critical risks facing clients today:
- Longevity risk – ensuring income can last over a longer-than-expected retirement.
- Sequencing risk – protecting against the impact of early drawdowns during market downturns.
- Inflation risk – helping to preserve purchasing power over time.
By addressing these risks from the outset, advisers can help clients maintain confidence – even in the present market uncertainty.
A tailored strategy in action
The benefits of this approach are becoming even clearer in today’s more volatile environment.
We recently worked with an adviser whose client was preparing to draw £25,000 per year from a pension portfolio of around £800,000, beginning in April 2025. Through conversations with the client and their adviser, our bespoke decumulation strategy was selected as the most suitable option, offering a balance of short-term income clarity with long-term growth potential.
However, at a recent review the client arrived feeling “anxious and hesitant.” Market headlines around tariffs had raised fears that the portfolio had taken a hit. They were considering using other funds to avoid drawing from what they assumed was a significantly depleted investment pot.
But the plan put in place for this client had been built with this kind of situation in mind. The portfolio had been split into two components:
- A short-term pot made up of structured products and cash, to cover income needs in the immediate years ahead.
- A long-term pot invested in a diversified, medium risk portfolio to support future growth.
The short-term pot had already yielded a cash amount of £25,000 required for the immediate year ahead, with further maturities planned through to 2031. Once the client saw that their near-term income had been protected – and that they were in a good position to ride out the current volatility with their long-term pot – their confidence returned. The strategy had done exactly what it was designed to do.
Turning uncertainty into confidence
Today’s conditions are testing even the most experienced of clients. But as we’ve seen, when a retirement income strategy is tailored, risk-aware, and structured well in advance, it can provide clarity and reassurance when clients need it most.
At Brooks Macdonald, we help advisers put those strategies in place – from bespoke solutions to structured approaches designed around evolving needs. Our decumulation framework supports income sustainability, manages key risks, and gives advisers the tools they need to navigate complexity, now and in the future, with confidence.
For more information on Brooks Macdonald’s Retirement Strategies, please click here
Andrew Bennie
Dan Thompson
