• An in depth look at Retirement LifePlanning

  • Guaranteed income Cash accounts Investments Tax wrappers Legacy

    There’s no need for your clients to worry about outliving their pension fund. With a guaranteed income, they have the security of knowing their essentials will be covered. By combining the flexibility of pension drawdown with income guarantees, your client is provided with a guaranteed income while keeping the pension fund invested.

  • Guaranteed income Cash accounts Investments Tax wrappers Legacy

    Everyday cash accounts can be used to cover both short term spending needs and providing funds for your clients to dip into, should unforeseen events happen.

    This means the investment portfolio can have a clear focus on medium to long-term growth, aiming for higher returns that will reduce the impact of inflation. Any income or capital from these investments can then be dripped into the cash accounts over time as market conditions and your client's needs dictate, by topping up their cash ‘buffer’.

  • Guaranteed income Cash accounts Investments Tax wrappers Legacy

    At retirement, people are faced with the daunting reality that their savings need to look after them for many years to come. So a big priority is making sure their income source can endure periods of market volatility as well as changes in inflation, supporting them for as long as they may need.

    A diversified portfolio of investments helps to reduce the impact of market volatility and inflation for longer term spending needs.

    The effect of volatility timing

    We asked Milliman, one of the world’s largest independent actuarial consultants, for their view on retirement planning under the pension freedoms. As part of their report they looked at the difference that the timing of market volatility can have on growth.

    Starting fund size: £200,000
    Regular income: £10,000 per year

    Investment returns: Year 1 Year 2 Year 3 Year 4 Year 5 Annual growth after year 5
    Scenario 1 20% 10% 0% -10% -20% 4%
    Scenario 2 -20% -10% 0% 10% 20% 4%

    While growth over 5 years is the same for both scenarios, the graph shows the difference that the timing of volatility can have on capital value.

    Impact of investment volatility

    Milliman graph

    With Scenario 2 illustrates that, even with reasonable growth in years four and five, capital runs out four years earlier than Scenario 1. The sequence of returns and volatility in the early years can make a big impact on your clients’ portfolios.

    Developing a diversified portfolio that meets the short, medium and long-term spending requirements is critical for promoting capital longevity.

    Creating your diversified portfolios

    Developing a strategy that blends fund types and ongoing monitoring will help to create a retirement portfolio that will last as long as it’s needed.

    • Income funds: aim to provide retirees with a stable income monthly, quarterly or semi-annually depending on their needs
    • Growth funds: aim to provide capital appreciation over the long term so retirees can grow some of their retirement fund to keep up with inflation.
    • Volatility managed funds: aim to provide retirees with some expectancy of returns whilst adhering to pre-defined risk parameters.
    • Inflation protection funds: aim to provide retirees with a return that either matches or exceeds inflation.

    Researching and picking funds from the thousands available in the market can be time-consuming. You can save time by exploring the funds available through AXA Wealth with our funds and investment range.

    Funds for retirement

    These funds from the investment specialists at AXA Investment Managers and our fund research experts at Architas offer a number of attributes that may be suitable for your retirement clients.

    AXA Lifetime Distribution Fund Architas Diversified Global Income Architas Diversified Real Assets

    Competitively priced for AXA Wealth customers
    Distribution frequency: Monthly

    AXA Lifetime Distribution Fund seeks a growing income from dividends, creating the opportunity for capital appreciation in order to help combat inflation.

    Distribution frequency: Quarterly

    The fund holds a weighted combination of equity, fixed income and up to 20% in alternative investment funds in order to maximize income whilst still delivering capital appreciation.

    Distribution frequency: semi-annually

    The fund has exposure to a range of ‘real asset’ investments including specialist property, social infrastructure, renewable energy and asset leasing funds.

    Why distribution for retirement?

    The fund’s equity exposure is deliberately cautious with a focus on large UK companies. UK Index-linked Gilts help to maintain low fund volatility whilst their returns move in line with inflation.

    AXA Lifetime Distribution Fund offers a low-volatility, managed solution through a blended equity and fixed income portfolio. The fund declares a regular monthly distribution whilst still providing some opportunity for growth via its equity holding.

    Why alternative income for retirement?

    In order to reduce the impact of volatility, this multi-asset fund is designed with a truly diversified income portfolio.

    Alternatives have attractive risk-return profiles, lower correlation to the traditional equity and fixed income markets, making them a useful way to also help manage fund volatility.

    Why real assets for retirement?

    Provides diversity: Real assets are not correlated to traditional equities and fixed income markets. They are a useful tool for managing portfolio volatility through diversification.

    Diversified income: The fund aims to generate a regular, stable income from diversified sources.

    Inflation aware: Real Assets, by their nature, maintain their real value over time. They represent the value of actual goods and services – not the value of money needed to buy them.

    • Guaranteed income Cash accounts Investments Tax wrappers Legacy

      When building a diversified portfolio to generate your clients’ retirement income, you’ll want to maximise that income in the most tax efficient way. We can support you in planning your client’s tax wrapper strategy long before their planned retirement date.


      Using the right mix of tax wrappers to take full advantage of tax reliefs and exemptions means your advice adds even more value.

      With us you can choose from a full range of tax wrappers, blending them to provide tax-efficient income. Designed with future tax changes in mind, you can be confident you’re ready for changes in tax legislation too.

      And with our funds and investment range you can determine an investment strategy which can be consistently applied whichever wrappers you choose. Helping you build your clients the perfect retirement solution.


      Now create the ultimate diversified portfolio for your clients

      Hover over the boxes below to see how the calculations work in practice. Each of your clients' portfolio, priorities and circumstances is different. And you can blend their wrappers accordingly to provide a discretionary income as tax-efficiently as possible.

      Find the assumptions the calculations below are based on here.

      pension-portfolio Onshore-bonds-portfolio OEIC-portfolio isa-portfolio income-result



      Explore our range of wrappers

    • Guaranteed income Cash accounts Investments Tax wrappers Legacy

      For most clients, being able to leave something for their loved ones or a cause that’s dear to them is really important.

      Help your clients plan their legacy planning whilst minimising inheritance tax.

      Simplifying estate planning

      • Use segmentation to set up multiple investment strategies for different objectives, all within a single tax wrapper with our onshore bond.
      • Meet wealth transfer objectives as well as personal income needs through our onshore bond’s Discounted Gift Trust.
      • Simplify estate planning with our wide range of trusts.

      Help your clients to understand inheritance tax

      Our online guide makes explaining inheritance tax easy. It includes everything from the importance of wills to ways of reducing your inheritance tax burden.

      Take advantage of the changes to pension death benefits

      The death benefits rules provide a great opportunity to review your clients’ arrangements. There are several options available and making the right decisions with your clients will could help minimise any tax payable.

      Because we’ve already built our pension products with change in mind, we’re able to support all the rules and are ready to give your clients’ full flexibility.