Russell Investments launches retirement portfolios
Russell Investments has launched a retirement solution that divides clients’ assets between near-term spending, future income needs and long-term growth. The offering includes new Short-Term and Medium-Term managed portfolios and a Retirement Calculator.
Advisers can retain a suitable existing portfolio for the long-term growth component, rather than replacing a client’s entire investment arrangement. The Short-Term Portfolio focuses on income and capital stability, while the Medium-Term Portfolio invests across income and moderate growth assets.
Russell designed this approach to reduce the need to sell longer-term growth investments to fund withdrawals during periods of market weakness. Its calculator helps advisers determine allocations, model a personalised path into retirement and review how portfolios should be rebalanced as spending needs and balances change.
An estimated 2.5 million Australians will retire over the next decade, and people aged 65 can expect to live for more than another 20 years on average. This longer period over which clients may need to draw income adds to the challenge of keeping some assets available for spending while others remain invested.
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Russell Investments head of distribution for Australia and New Zealand, Neil Rogan, said retirement required advisers to consider both needs. “The challenge for advisers is balancing the money clients need to live on today with the assets that need to remain invested for the years ahead. Our Retirement Solution provides a framework for managing those competing needs.”
Russell’s research found that 43 per cent of advised investors sought advice for reassurance about their financial future, compared with 38 per cent who cited retirement planning. Among the advised clients surveyed, 83 per cent strongly agreed they were confident in achieving their financial goals after receiving advice, up from 41 per cent before receiving it.
Rogan said advisers could introduce the new portfolios as clients’ needs changed while keeping suitable existing investments for longer-term growth. The portfolios can be used separately or together. Both new portfolios are available on CFS Edge with a minimum investment of $5,000.
Colonial First State executive director of managed accounts Francy Taylor said their addition broadened the retirement options available to advisers on the platform.
