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The power of PruFund – Retirement income and drawdown

92 min watch 22 Nov 21

In this session, we explored some of the key retirement income planning myths uncovering the key considerations when developing retirement income plans and how to ensure your clients have a plan that delivers the outcomes they are looking to achieve, in a way they understand. We showed you how PruFund is different to other multi-asset funds, especially in the asset allocation arena. And explained how we set the Expected Growth Rate (EGR), show how the asset allocation reduces volatility, and why the fund has been so popular for clients looking for steady retirement income.

Learning Outcome – to demonstrate an understanding of:

  • Describe the key planning considerations when developing a client’s retirement income strategy

  • Explain the ways in which you can determine if a client’s income is sustainable

  • Describe the benefits of utilising ‘smoothed’ multi asset returns in retirement for a client

  • Explain how to provide reliable long-term income for clients wanting to retire

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.


Test your knowledge

1. PruFund provides clients with an EGR, what does this stand for?

a. Enhanced Growth Ratio

b. Expected Growth Rate

c. Expected Global Return

d. Enhanced Growth Return


 2. In relation to cash flow modelling, a recent white paper on drawdown suggested the advice industry needed to stop?

a. Using growth rates from illustrations

b. Showing gross income

c. Using cautious funds for drawdown

d. Applying stress tests


 3. Drawdown critical yields can be different between providers due to?

a. Difference in profit margins

b. Difference in charges and annuity rates used

c. Asset allocation differences

d. Different actuarial views

Claim your CPD certificate