Invesco has announced a new strategic partnership with Just Group with the launch of a retirement solution for advised clients.

The move comes in the wake of the FCA thematic review of retirement income advice.

With people living longer than ever and in today’s challenging investment markets, Invesco suggested there is a greater need for product innovation in retirement solutions – giving financial advisers flexibility when it comes to managing risks to income.

The new partnership will aim to bring together Invesco’s model portfolio service (MPS) and Just Group’s guaranteed income producing asset, delivered through its secure lifetime income (SLI) solution. This offering is designed to sit within existing pension drawdown arrangements, helping advisers to mitigate retirement risks such as longevity, sequencing risk and unknown life events.

Head of UK distribution at Invesco, Kate Dwyer, said: “Modern-day retirees need greater flexibility and options to ensure their savings are working as hard as possible for them. We believe Invesco can play an important role in driving innovation and supporting advisers when it comes to managing the risks to their clients’ income during decumulation.

“The two propositions, currently only available separately, will work together to give advised clients the option to have the guaranteed income of a secured lifetime product whilst getting the potential growth benefits of a model portfolio, with the flexibility to reinvest the income they don’t immediately need.”

Retail retirement income director at Just Group, Kavi Myladoor, added: “Combining a guaranteed income producing asset such as that delivered by our SLI solution with growth model portfolios, within the SIPP drawdown wrapper, has been shown to increase the probability of delivering higher long-term portfolio value, higher income and a more sustainable plan.

“We are delighted to work in collaboration with Invesco to offer a highly efficient and differentiated retirement income proposition to help deliver better client outcomes.”

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