Russell launches retirement solution

Russell Investments has launched retirement solutions comprising two managed portfolios and a retirement calculator, aimed at helping advisers manage the competing liquidity and growth needs of Australians entering retirement.

The solution allows advisers to structure retirement assets across three-time horizons: near-term spending and liquidity, future income needs and longer-term capital growth.

It includes the Russell Investments Short-Term and Medium- Term Portfolios, alongside an appropriate long-term growth portfolio and a purpose-built retirement calculator.

Russell Investments head of distribution Australia and New Zealand Neil Rogan said retirement should not be treated as a single investment phase.

He added that an estimated 2.5 million Australian's are expected to retire over the next decade, while people paged 65 can expect to live for more than 20 additional years on average, citing government data.

"Pre- and post-retirement is not a single investment phase. Clients still need long-term growth, but they are also drawing from their portfolio to fund their everyday living expenses," Rogan said.

"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."

The Short-Term Portfolio focuses on income and capital stability, while the Medium-Term Portfolio invests across income and moderate growth assets. Longer-term assets can remain invested for capital growth.

Russell said separating assets by time horizon is designed to help advisers manage sequencing risks and reduce the need to sell longer-term growth assets to fund withdrawals during period of market weakness.

The portfolios can be used individually or together, allowing advisers to retain suitable existing investments for longer-term growth.

"Advisers shouldn't have to rebuild a client's portfolio just because a client is approaching retirement," Rogan said.

Both portfolios are now available on CFS Edge, with a minimum investment of $5000.

Colonial First State executive director, managed accounts, Francy Taylor said the portfolios broadened the retirement options available to advisers on the platform.

"Russell Investments has not only designed these portfolios specifically for retirement outcomes but is also supporting advisers with a dedicated retirement calculator to help determine how the portfolios can be used appropriately within a client's retirement strategy," Taylor said.