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Running a financial practice is a rewarding journey filled with excitement and challenges. However, amidst the exhilaration, it’s not uncommon to feel overwhelmed, stressed, and stuck at times. The endless to-do lists, tight deadlines, and constant changes in the industry can take a toll on your well-being and your business’s success.

If you find yourself in this situation, know that you’re not alone. Many financial practitioners face similar struggles, but there are proactive steps you can take to navigate through these challenges effectively.

1. Write It Down: Feeling overwhelmed often stems from mental clutter. Take a moment to declutter your mind by jotting down all your tasks and responsibilities on paper. This simple act can help alleviate the burden on your brain and provide clarity on what needs to be done. Don’t worry about organising or evaluating tasks at this stage; just get them out of your head and onto the page.
2. Focus on the Process: While it’s essential to have clear goals for your practice, it’s equally important to focus on the process of achieving them. Instead of fixating solely on the end result, break down your objectives into smaller, manageable tasks. By focusing on each step of the journey, you can avoid feeling overwhelmed by the magnitude of your goals and make steady progress towards achieving them.
3. Schedule and Prioritise: Break down large projects into smaller milestones and schedule specific times to work on each task. Just as you prioritise meetings with clients, allocate dedicated time slots for completing essential projects. This approach not only ensures that you stay on track but also prevents last-minute stress and overwhelm.
4. Seek Strategic Support: Recognise when you need additional support in navigating the complexities of running a financial planning firm. Whether you’re struggling with acquiring clients, managing finances, or implementing regulatory requirements, seeking strategic coaching and guidance can provide valuable insights and assistance. Sometimes, an objective outsider can offer a fresh perspective and help you address challenges more effectively.
5. Address the Root Cause: While short-term solutions can alleviate immediate stress, it’s crucial to identify and address the root cause of your overwhelm. If you’re feeling consumed by stress and uncertainty, consider whether there are underlying issues contributing to these feelings. Whether it’s a lack of business management experience or uncertainty about your practice’s direction, acknowledging the problem is the first step towards finding a sustainable solution.

Remember, it’s okay to ask for help when you need it. If you’re interested in exploring how strategic support can benefit your practice, don’t hesitate to reach out to us. We’re here to provide guidance, reassurance, and practical solutions to help you rediscover your passion for your work and achieve greater success in your financial practice.

For a confidential consultation, please visit our website or call us on 01472 728 030. Let’s work together to overcome challenges, optimise your practice, and ensure you get the restful night sleep you deserve. Your well-being and the success of your business are our top priorities.

As we celebrate International Women’s Day today, I wanted to take a moment to reflect on our journey in the financial services industry. Like many of you, I didn’t exactly plan to land here, but I’m grateful for the opportunities and incredible people I’ve had the privilege to work with at We Complement over the past three years.

We Complement is fortunate to partner with firms that prioritise inclusivity, but let’s not ignore the reality check from the recent House of Commons Treasury Select Committee report titled “Sexism in the City.” It’s disheartening to read about the widespread issues of sexual harassment and bullying that still plague our industry. It’s a sobering reminder that we still have a long way to go.

One thing that struck me from the report is the pervasive culture within the sector that holds back progress for women. It’s clear that addressing issues like pay disparity, harassment, and maternity leave requires more than just surface-level fixes. We need deep-rooted changes in our culture.

Recently, I had a conversation with a friend who, like many women in our industry, feels pressured to prioritise career advancement before starting a family. This mindset is concerning because parenthood should not be seen as an obstacle to professional growth but as a natural part of life’s journey.

On a positive note, the Office for National Statistics (ONS) data has revealed that women made up 47.3% of staff in the financial and insurance services sector for Q4 2023, this is a 3.26% increase from Q1 2023. Progress is happening, but there’s still much work to be done.

So, here are a few suggestions for how we can improve our culture and support women and men in our workplace:

1. Flexible working policies: Let’s rethink the traditional 9-5 and explore options like flexible schedules, part-time work, and job sharing. By accommodating the realities of childcare responsibilities, we’ll attract more talent and foster loyalty among our team.
2. Remote working/hybrid: Embracing remote work not only benefits the environment but also promotes work-life balance, especially for those juggling school drop-offs and pickups. Trust me, a motivated and engaged team can thrive with the right remote setup. Feel free to reach out to We Complement if you need a hand with this.
3. Maternity policies: Let’s value and support employees taking time off for family without penalising their career growth. It’s time to bridge the gap in salary stagnation between men and women post-parenthood.
4. Women in the boardroom: If our team is diverse but our leadership isn’t, let’s ask ourselves why. Representation matters, and it’s essential to have diverse voices at every level of decision-making.

Together, let’s continue striving for a more inclusive and supportive workplace where everyone can thrive, regardless of gender or family status.

Here’s to progress and positive change.

Here at We Complement, we’ve been immersing ourselves in extensive research to uncover what truly makes a standout Centralised Retirement Proposition (CRP).

A CRP isn’t just your typical Client Investment Proposition (CIP) with a few adjustments for retired clients. It’s about crafting a solid, repeatable, and reliable process specifically tailored for clients in decumulation. We’re honing in on the areas of financial planning that hold significant importance for individuals at this stage of life.

While there’s often overlap between your review processes for clients in accumulation and decumulation, this article is all about shining a light on how to adapt your review process for clients approaching retirement. Discover how these adaptations can be seamlessly integrated and documented within your CRP.

1. Frequency and type of review

As a client approaches and enters retirements, you may recommend that you meet for review meetings more regularly than when they were in accumulation. You might also feel that the client would benefit from in person meetings, rather than online or telephone meetings, to improve communication during what can be a period of significant change for many people. This could vary between sub segments of clients.

If there are any changes to how and when you meet your retirement clients for a review when compared to your processes for accumulation clients, this could be documented in your CRP. This demonstrates that you have considered the service you are offering your clients and whether it is still meeting their needs and providing value for money in this new stage of life.

2. Data gathering

How often do you ask your decumulation clients to complete a full fact find? Is there anything specific that would trigger a new fact find being requested?

Clients who are approaching retirement or who have recently entered retirement may experience a lot of life changes in a short period of time, compared to the average accumulation client. This could mean that you ask your clients to update their details more regularly when they reach retirement age. You may also have a different fact-finding process for clients once they reach this stage of their life. This is explored in more detail in our previous blog, Central Retirement Propositions – Deep Dive #3: The Fact Find.

3. Cashflow updates

Your approach to cashflow modelling and how often you update these models is something else that can be documented in your CRP.

How often do you run a cashflow model for your decumulation clients, and does this change depending on sub segments? Is this different for your accumulation clients?

You might also model more or different scenarios for your decumulation clients, use different stress testing methods, or incorporate tools like Monte Carlo simulations for certain clients.

4. Vulnerability

Clients can be vulnerable at any age. According to a 2022 survey by the FCA

https://www.fca.org.uk/data/financial-lives-2022-early-survey-insights-vulnerability-financial-resilience

47% of UK adults showed one or more of the key drivers of vulnerability, which are defined by the FCA as poor health, negative life events, low financial resilience or low capability.

However, as people get older, certain drivers of vulnerability, such as poor health or negative life events, may become more likely. Some clients may also consider retirement to be a stressful time, and so retirement itself could influence a client’s vulnerability.

How do you assess clients for vulnerability, and do you make any changes to your processes surrounding vulnerability for clients who are at or approaching retirement?

5. Event driven reviews

Certain events, whether life events specific to the client or world events that could affect all investors, could prompt you to arrange an ad hoc review meeting with a client. Your approach to this may change as clients enter retirement, and possibly vary between sub segments of clients.

For example, a market crash could affect all clients, but clients who are in decumulation may be affected more than clients who are in accumulation. Breaking this down further, clients who are at the start of their retirement journey and who are heavily reliant on their investments to provide them with an income may be particularly impacted by this. In contrast, clients who have significant secure income and who have already enjoyed many years of retirement may have less to worry about.

What is your process for identifying when retirement clients might benefit from a review outside of your agreed review schedule? Are there any particular trigger events that would prompt you to make contact with certain clients?

If you’ve been keeping up with our previous blog posts, you’re probably familiar with our exploration into what makes a top-notch Centralised Retirement Proposition (CRP). It’s essential to understand that a CRP isn’t just a Centralised Investment Proposition (CIP) dressed up for retirees. Instead, it should offer a sturdy and dependable process tailored to meet the unique needs of clients transitioning into decumulation, with a special focus on the financial planning aspects crucial during this phase of life.

In this week’s newsletter, let’s dive into how we can personalise the fact-finding process to better suit clients nearing or already in retirement, and how this tailored approach can lead to better outcomes for everyone involved. While the data we gather during the fact-finding phase might stay consistent across clients in both the accumulation and decumulation stages, there are specific topics of conversation that can truly enrich the process for those stepping into decumulation.

1) How do they plan to utilise their pension?

For a significant number of clients, the response may be quite simple: they aim to use their pension to finance their retirement years. However, other clients might have ample assets and income from other streams, so they don’t plan on tapping into their pensions. Instead, they view it as a strategic tool for estate planning. There are clients who’ve been contributing to a pension throughout their career, under the assumption that they’d depend on it during their golden years. However, as they edge closer to retirement, they realise that their needs and goals have evolved. Engaging in dialogues regarding how a client intends to use their pension becomes especially crucial as they contemplate or transition into retirement. While such discussions are feasible at earlier life stages, much will probably have transformed by the time a client enters retirement.

2) What is their vision of retirement?

As clients approach retirement, their perspectives on this life stage may alter. Some may arrive at their target retirement age only to realise they’re not prepared to cease working, while others might experience a contrasting revelation and opt for early retirement. Certain clients may conclude that a gradual retirement suits their needs best, whereas others might decide to continue working full or part-time until it’s no longer feasible. While these subjects can be discussed during earlier phases of life, it’s important to note that upon reaching the milestone of retirement, clients’ preferences could shift.

3) Exploring health history and lifestyle

The challenge of longevity risk and the duration a client’s pension needs to sustain them is fundamental in retirement planning. While some health, lifestyle, and family history data may have been collected earlier in the financial planning process, the approach of retirement presents an opportune time to delve deeper into all factors that could potentially impact a client’s lifespan, and subsequently, the longevity of their pension. This information could also offer insights into how a client’s activity levels and income requirements might evolve as they navigate through the different stages of retirement.

4) Addressing client concerns about retirement

The psychological aspect of retirement planning is equally as important as the practical considerations. Retirement represents a significant life change that, while often celebrated, can also trigger an emotional transition fraught with worries and concerns. Understanding these concerns can provide valuable insight into your client’s mindset and potential future reactions. For instance, a client accustomed to a regular income might find the prospect of relying solely on savings daunting, even if their savings adequately meet their income needs. Such clients may be more susceptible to overreacting to market fluctuations and could benefit from strategies that take this into account. Some concerns may be baseless, acting as unnecessary barriers preventing clients from achieving their goals. Other concerns, while valid, could still benefit from open discussion with their adviser. Encouraging clients to voice their worries and concerns about retirement can help create a retirement plan that is tailor-made for each individual, enhancing the overall client experience and outcomes.

The main takeaway is that the fact find you use for accumulation clients might not allow you to probe deeply enough into a decumulation client’s situation. In addition, alongside a standard fact find, an individualised approach to the fact-finding process, including open-ended questions, is crucial. This approach requires a comprehensive understanding of the client’s retirement goals and financial situation, as well as a deeper exploration into their health history, lifestyle, and potential longevity. Advisers must also address the psychological aspects of retirement, understanding and addressing any fears or concerns clients may have about this significant life transition. By tailoring the fact-finding process to each client’s unique needs and circumstances, advisers can create personalised retirement plans that enhance client outcomes and satisfaction.

We Complement have been assisting businesses in developing and integrating centralised systems for numerous years, rigorously testing them for robustness, reliability, and repeatability. If you’re interested in learning more about how we can lend our expertise to help you establish centralised systems, please visit our website or reach out to us. Whether you prefer to connect online or give us a call at 01472 728 030, we’re here to help!

At We Complement, we’ve been delving deep into the elements that constitute an exceptional Centralised Retirement Proposition (CRP). A CRP is more than merely a Centralised Investment Proposition (CIP) modified slightly for retirees. It should offer a reliable, repeatable, and consistent procedure for managing clients in the decumulation phase, with an emphasis on financial planning aspects that are particularly crucial at this life stage. This article aims to highlight areas to contemplate while devising an appropriate and sustainable withdrawal strategy for your clients. This article is not intended to be an exhaustive checklist of what a CRP should include, nor does it favour one strategy over another. Instead, it aims to stimulate thoughtful discourse and consideration. We hope it offers some valuable insights!

How do you determine the sustainable withdrawal rate for your clients?

Clients typically rely on their pensions to sustain them throughout their remaining years, necessitating guidance to discern the ideal withdrawal amount to ensure their pension does not deplete prematurely. The calculation of this figure is a challenging process, not necessarily an exact science, underlining the importance of documenting your methodologies and the reasoning behind them. Having this documentation can provide a solid defence should a client question or challenge your conclusions in the future, demonstrating the how and why of your calculations. What considerations factor into your sustainable withdrawal rate? Do you adhere to the often referenced 4% sustainable withdrawal rate proposed by William Bengen, or do you modify this percentage for UK investors? How do fees impact the sustainable withdrawal rate? Do you consider that the sustainable withdrawal rate might change for portfolios with different asset allocations? Do you apply a uniform sustainable withdrawal rate to all clients? What research and evidence support your approach? Determining a suitable withdrawal strategy is a significant aspect of assisting your clients with retirement planning. Your CRP is the perfect place to justify your thought process.

How much are you allocating to cash?

As discussed in last week’s newsletter: CRP Deep Dives: Decumulation Risks, sequencing risk can significantly influence the longevity of a pension pot. To mitigate this risk, some advisers adopt a bucket strategy or maintain a certain amount of cash ready for withdrawals. Some advisers avoid this approach and don’t place any more importance on cash than they would for an accumulation client.

Both approaches have their merits and can be backed by compelling arguments. The critical factor is to clarify your methodology and substantiate the reasoning behind it. This clarification promotes a consistent procedure across the firm and among clients, ensuring that your advice is robust, well-founded, and evidence-based.

What if things don’t go to plan?

The unpredictability of the future plays a significant role in making retirement planning a challenging task. Unforeseen events such as market downturns or significant life changes can disrupt even the most meticulously crafted plans, underscoring the need to prepare for the unexpected. What measures do you implement to counteract unexpected occurrences? Do you frequently engage in discussions about contingency plans with your clients? If so, at what stage do you determine that it’s necessary to resort to these contingency plans?

What probability of failure are you comfortable with?

Choosing a sustainable withdrawal rate often requires balancing a higher income against the risk of depleting the portfolio. Some clients might favour the potential of a higher income, despite the risk of it running out, as opposed to the certainty of a lower, but enduring income. Your CRP could be an opportunity to document the level of uncertainty you are typically willing to tolerate when deciding on a sustainable withdrawal rate, the reasoning behind that tolerance, and how you approach this compromise with clients.

Assumptions about longevity

Predicted longevity is a crucial factor in determining the sustainable withdrawal rate, and your methods for estimating probable longevity can be documented in a Centralised Retirement Proposition (CRP). Do you use a standard life expectancy for all clients? Do you rely on longevity data from authoritative sources like the Office for National Statistics? When advising a couple, do you factor in the likelihood of at least one partner reaching a specific age, or do you evaluate their life expectancies independently? Your CRP is the optimal platform to outline the assumptions you make regarding longevity and the process by which you arrive at these assumptions.

Establishing a resilient CRP requires recognising and mitigating risks to assure clients of a secure and sustainable retirement income. It’s crucial to craft strategies that resonate with clients’ risk tolerance, objectives, and personal circumstances. Although CRPs may not be heavily regulated, integrating these risk considerations can significantly enhance the quality and efficacy of your retirement planning services.  If you’re contemplating a review or implementation of your CRP, consider enlisting the expertise of our seasoned professionals. We specialise in constructing bespoke CRPs, finely tuned to meet your clients’ distinctive needs. Get in touch with us either online or by dialing 01472 728 030. We’re at your service, ready to deliver top-notch due diligence and investment research services.

Yes, keeping in touch with your clients regularly is a great thing to do, however, as you will no doubt know, the Financial Conduct Authority (FCA) also requires advisers who supply investment advice to do annual planning reviews in a formal way. Specifically, you should “agree with a client whether a periodic assessment of suitability will be performed. If periodic assessment is to be performed it must be at least annually and the continued suitability confirmed in writing”.

These annual planning reviews- which we can help with, are a valuable opportunity to have a really in-depth check-in with your client – and the best ones focus on the person, as well as the products.

So, while it is possible to include everything on one page, at We Complement we believe APRs should become a document of your client’s annual financial planning journey – not just a snapshot.

For example, while you need to include details of all current investments, their performance, and any recommendations you would make, a good APR will also appraise your customer’s circumstances – what are they investing for, how they are planning on making it work and any worries they may have.

Clearly, this is considerably more time consuming for an IFA – which is where the We Complement team come in.

We will work with you to develop a document which is personal to each client, while also ensuring it truly represents your brand. We will undertake all necessary research to emphasise the value you have provided during the previous 12 months – and how you will continue to do so in the future.

We can also access all the necessary information on your system, such as products, planning and risk profile, and add these to the APR document, giving an overall review that provides a truly detailed view of your client’s financial year.

We Complement believes that your annual planning reviews are a great opportunity to engage fully with the financial planning needs of your clients. Sending a one page summary just seems to be such a wasted opportunity not to take the chance to engage positively with them.

Once we have all the details we need, we go ahead and prepare the review, and typically produce reports in five to seven working days.

For more information about our annual review offering and complementary offerings, and how they can benefit you and your clients, please get in touch.

Are you ready to transform your advisory practice into a seamlessly efficient powerhouse? At We Complement, we understand the critical role client management plays in the success of adviser firms. Our Client Management Service will revolutionise the way you interact with clients, streamline administrative processes, and give you the time and confidence to grow your business.

Efficiency Redefined:

Say goodbye to complicated and disconnected processes! Nicola Porter, our Head of Operations, and our team know what works. They are focused on cutting out inefficiencies, so you can concentrate on what you do best—providing expert financial advice. With a keen eye for detail, they handle the complexities of data gathering and organisation, setting the stage for solid client recommendations.

Proactive Case Management:

Ever felt overwhelmed by administrative bottlenecks?  Yep, we understand, our team go beyond just managing cases; they relentlessly push for progress, refusing to accept delays. Your business deserves a dynamic force that keeps things moving, and our team is up to the challenge.

Seamless Communication:

Imagine a world where communication breakdowns are a thing of the past. We have mastered communication, and are always 5 steps ahead- never playing catchup.  We Complement ensures that information flows effortlessly between you, and your clients and anticipates the next steps. Fostering a collaborative environment that maximises productivity. Imagine the ease that comes with a well-connected team working in perfect harmony.

Why Choose We Complement’s Client Management Service?

Boosted Efficiency, Amplified Results:

Our streamlined administrative processes are designed to amplify your productivity. By optimising every step, we save you time, allowing you to focus on what truly matters—delivering exceptional financial advice and growing your client base.

Precision and Compliance:

Navigate regulatory requirements seamlessly with We Complement. Our client management service gives you access to a comprehensive suite of suitability templates our paraplanners designed with Consumer Duty in mind. Paired with our dedicated team of paraplanners, our unwavering commitment to technical accuracy guarantees not just compliance, but surpassing regulatory standards. Stay ahead confidently.

Enhanced Client Experience:

Elevate your client interactions with prompt, efficient service. Our service helps you to exceed client expectations, fostering strong relationships. We embed ourselves as part of your team and solidify your reputation as a trusted financial adviser.

Cost-Efficient Operations:

We Complement doesn’t just optimise your processes; we save you money. Inefficient processes can be costly. We will review your administrative functions, (How many different licenses are you paying for systems that have the same functions?) and make suggestions as to how you can cut down on both time and financial resources, ultimately boosting your bottom line.

Administrators serve as the first and last point of contact for clients, representing your business throughout. Acknowledging and valuing their skills is crucial for the success of your advisory firm. Whether you’re a financial adviser seeking improved efficiency or a business owner aiming to elevate the advice journey, We Complement provides an all-encompassing solution. Contact us online or call 01472 728 030 to discover how we can enhance your client management services.