Sarasin & Partners has expanded its solutions range with the launch of the Sarasin Retirement Income strategies.
Developed in partnership with financial advisers, the new strategies are designed to help clients generate income in retirement while preserving capital amid changing market conditions.
The Sarasin Retirement Income strategies comprise two approaches, Natural Income and Structured Decumulation, each offering a framework to provide clarity and confidence throughout retirement. Both strategies are managed within Sarasin & Partners’ established Model Portfolio Service, aligning to clients’ income goals as assessed by their financial adviser.
The Natural Income strategy draws only from income generated by the portfolio through dividends and interest, targeting a yield of 3 to 4% per annum, while keeping capital invested for growth and inflation protection helping preserve wealth over the long term.
The Structured Decumulation strategy aims to provide a steady income in retirement by utilising three separate “pots” with varying time horizons. In partnership with advisers, the strategy combines short-term cash reserves, medium-term fixed income and real assets, and long-term income-producing equities. This structure helps manage volatility and support regular income over time.
Building on more than 30 years of experience managing decumulation portfolios for charities, Sarasin & Partners brings the same principles of discipline, sustainability and stewardship to support individuals in retirement.
Christopher Cade, Head of UK Sales at Sarasin & Partners, commented, “As more individuals transition from the wealth-building accumulation phase into the income-generating decumulation phase, the challenge becomes drawing a sustainable income while preserving capital. Leveraging our experience of building MPS portfolios, these new strategies are designed to provide longevity risk mitigation, consistency in income and help preserve wealth for beneficiaries.”
Ben Gilbert, Portfolio Manager for Sarasin & Partners’ Model Portfolio Service, added, “Decumulation presents a distinct set of risks, with longevity and drawdown being key considerations. Our Retirement Income strategies are built to meet those challenges, drawing on our long-standing experience managing sustainable income portfolios and providing protection against market volatility.”