Quilter Cheviot has launched a personalised discretionary decumulation offering, the Tailored Income Service, aimed at supporting clients in meeting their retirement goals.

The offering is based on Quilter Cheviot’s Discretionary Portfolio Service models, which will be selected based on clients’ risk profiles, objectives, and capacity for loss, with the investment manager tailoring the portfolio to the client’s needs.

Quilter Cheviot said the service was designed in a way that reflected its experience in managing decumulation portfolios.

This approach will see Quilter Cheviot choosing one, or a combination, of three core approaches.

These include a dynamic and actively managed two-pot approach, with a short-term income reserve portfolio for regular and unanticipated expenses, as well as a growth portfolio for the majority of assets to grow.

The second is a natural yield strategy, where income is generated through dividends and interest, aiming to provide clients with a steady income stream without the need to sell investments.

The final approach is an encashment approach, where income can be taken flexibly in a tailored manner by selling down investments.

Quilter Cheviot said it had chosen a more personalised option for its decumulation service due to the unpredictable nature of people’s lives and retirements.

The minimum investment for the new decumulation offering is £500,000, while charges are in line with Quilter Cheviot’s existing Discretionary Portfolio Service.

“Traditional ‘off-the-shelf’ retirement income solutions, often built around static withdrawal rates, cannot account for the realities of market volatility, evolving regulation, or the nuances of individual client objectives,” commented Quilter Cheviot chief investment officer, Caroline Simmons.

“Our tailored approach – whether that is through two-pots, natural yielding strategies, simple encashment or a combination of those – is designed to adapt to these complexities, ensuring a more confident, resilient and personalised retirement.

“At the end of the day life is lumpy, and this means people’s cashflows are too. Having a personalised service means those cashflow needs can be properly managed.”

Quilter Cheviot head of proposition, Peter Gorogh, added: “Decumulation planning doesn’t happen in isolation. It overlaps with estate planning, tax efficiency and long-term wealth sustainability.

“For clients with significant wealth or complex needs, a tailored strategy is therefore vital. Recommendations around the investment structure help inform a client’s drawdown strategy and can make a lasting difference to their retirement over both the short and long term.”

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