The three key challenges for financial advisers today

These new market conditions have triggered a series of challenges and risks that have the potential to significantly impact the livelihood of current and future retirees. We’ve coined these the triple threat to retirement portfolios

1. Cash is going backwards, in real terms
   Falling interest rates have starved income dependant investors. Cash holdings and term deposits, while offering certainty in both return and protection, are now promising one more thing: to go backwards in real terms.
2. When yield is low and risks are high
   Expected returns on traditional defensive assets are at record lows forcing investors to look for more attractive yield and moving up the risk curve. Meanwhile, the combination of the risk of rising rates and the threat of inflation means the protective qualities of these defensive securities begin to be called into question.
3. Coping with an equity market correction
   Despite delivering attractive long term returns, many retirees cannot risk excessive equity exposure. Whether it's sequencing risk or loss aversion, a downturn in equity markets can significantly impact both the journey and the outcome of retirement.

These investment challenges need to be met head on with an innovative, retirement-focussed solution that offers the ability to generate higher returns with the added benefit of downside protection.