The Changing Decumulation Landscape: Global Trends, Innovations and Regulatory Shifts
The Global decumulation market is changing and increasingly homologising as markets and regulators look to each other for best practice and lessons learnt. In Q4 2024, Alpha FMC completed detailed analysis of the Global retirement market. This was driven by a number of enquiries from clients who were struggling to balance the changes in customer demands with the increase in costs driven by significant global regulatory programmes.
Alpha’s approach was to complete face to face interviews with C-suite leaders, overlay that with desk-based analysis as well as providing an additional layer of challenge by utilising Alpha’s Subject Matter Experts from several countries. This enabled a few key themes to emerge:
- The need for quality evidenced advice will increase over the next few years.
-
Flexible innovative products have arrived although pace and quality vary significantly depending on country
-
Products need to be more flexible ‘In-Retirement’ as customers will move from drawdown solutions into annuitised solutions (or hybrids)
-
Collective Defined Benefit Schemes are being utilised in Europe. We do not expect these products to be a significant option in the UK market for a few years
-
AI is starting to be used in key processes (Portfolio Re-balancing), and we expect this to increase significantly over the next few years
-
The Global Regulatory Agenda will continue at pace with balance sheets being impacted and demand for skilled resource increasing
If you have any questions about the report or would like Alpha FMC to contact you, please get in touch with us.
