14 July 2026
The move from accumulation to retirement is one of the biggest transitions in financial planning. The portfolio does not always change enough to reflect it.
A client may spend 30 or 40 years building wealth, then enter retirement with broadly the same investment structure they used during accumulation. That may be suitable for some clients, but it should not be the default assumption. The job of the portfolio has changed.
Accumulation has one main job
In accumulation, the main objective is growth. The client is usually still contributing. Time is on their side. Volatility is uncomfortable, but it can be an opportunity. Market falls allow future contributions to buy assets at lower prices.
The adviser’s role is to keep the client invested, manage risk appropriately and align the portfolio with long-term objectives. A diversified investment portfolio can be highly effective in this environment because it is well suited to long-term market participation.
Approaching retirement is different
The final years before retirement are often underappreciated as a planning challenge.
The client may have a target pot in mind. They may be planning a specific retirement date. Contributions may still be going in, but the time available to recover from a poor market period is shorter.
A 20% market fall five years before retirement is not the same as a 20% market fall 20 years before retirement.
This is where the existing investment portfolio reaches its first real limitation. It still relies largely on market growth to produce positive returns. In a weak market period late in accumulation, there is less time for that growth to arrive.
A structured allocation can help by adding a different return profile alongside the client’s existing investment portfolio. Defensive autocalls and step-down plans can produce a positive return even when the underlying index is flat or moderately lower. That broadens the range of market conditions in which the wider portfolio will produce growth.
Decumulation has several jobs at once
In retirement, the portfolio has to do more again. It has to fund withdrawals, manage the order of returns, preserve flexibility, keep the client invested for the long term and support behaviour during difficult markets.
It has to do all of this while contributions are no longer flowing in. That is a very different challenge from accumulation. A portfolio that was suitable for building wealth may not be enough on its own for drawing wealth sustainably.
The problem with one tool doing every job
The temptation is to ask the existing investment portfolio to do everything. Fund income. Manage volatility. Grow long term. Reduce sequencing risk. Support behaviour. Provide liquidity. Help the client hit a target. That is a lot to ask from one portfolio.
The existing investment portfolio can remain central, but it is unlikely to be the right tool for every job in the years around retirement. That does not mean the existing investment portfolio is wrong. It means the retirement framework may need to become more purposeful.
A more purposeful structure
A retirement portfolio can be built around different time horizons. Near-term income can be held in cash, money market assets or short-dated instruments.
Early retirement income needs can be supported by structured deposits, which offer 100% capital protection at maturity from the deposit taker and qualify for FSCS protection up to applicable limits, subject to eligibility.
A defensive structured product allocation can sit alongside the client’s existing investment portfolio to help broaden the range of market conditions in which the wider portfolio can produce positive returns.
The existing investment portfolio can remain focused on delivering the long-term growth needed for income sustainability, while other parts of the portfolio help fund withdrawals during periods of market stress.
This does not make the portfolio more speculative. It makes the portfolio more deliberate.
Each part has a job.
Why clients understand this
Clients do not always engage with technical portfolio language. They do understand the purpose. This part funds your income now. This part supports income over the next few years. This part is designed to reduce the effect of market falls. This part remains invested for long-term growth. That structure can reduce anxiety. A client knows their near-term income is not dependent on selling growth assets in a falling market.
The adviser opportunity
The opportunity is to improve the retirement framework and reduce the chance of a bad outcome for clients.
Retirement is not just the next stage of investing. It is a different portfolio problem. Different problems often need different tools.
If you'd like to discuss how structured products could complement your current investment and retirement proposition, I'd welcome the conversation. Please get in touch on 020 3100 8157 or [email protected].
Joe Simpson
Director, Investment Management
Structured products are capital-at-risk investments and are not suitable for every client. Past performance is not a reliable indicator of future results. This article is for professional advisers only and does not constitute advice.
The value of any investment can go down as well as up, and you may get back less than you invest. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344).
Important Note
No news or research content is a recommendation to deal. It is important to remember that the value of investments and the income from them can go down as well as up, so you could get back less than you invest. If you have any doubts about the suitability of any investment for your circumstances, you should contact your financial advisor.
The value of investments can fall as well as rise. Investors may get back less than invested. Past performance is not a reliable indicator of future results.
The value of investments can fall as well as rise. Investors may get back less than invested.
