Financial advisers work with clients at all stages of life. In this article, we meet Carol, who is prioritising financial stability as she approaches retirement. Her story reflects a growing group of clients who want their investments to support a secure and comfortable lifestyle rather than chasing market highs.
Case study: Carol – the income seeker
Carol is 59 and starting to think seriously about retirement. She has worked hard, saved what she could, and is now looking for a way to turn her savings into a regular income she can rely on. Her pension outlook is modest, so preserving her capital is a priority. Cautious by nature, she wants to stay invested without taking on too much risk.
Carol wants the peace of mind that she can cover her day-to-day expenses, deal with any possible surprises, and enjoy her retirement without constantly worrying about market volatility or running out of funds. While also keeping some flexibility for unexpected costs or healthcare needs that may arise later in life as she grows older.
Her adviser recommends MAF Income to her. This is an actively managed multi-asset fund that aims to pay a monthly income while growing investors’ money over the long-term. It is diversified across asset classes, meaning it isn’t tied to the fortunes of a single market – helping smooth out the inevitable ups and downs.
Planning for the long haul
Retirees today need their savings to stretch much further than previously as they are living longer than previous generations, often many years beyond what traditional retirement planning models accounted for.
Carol’s retirement could last 20 or even 30 years, which is a long time to rely on investment income. That’s why she needs a fund that doesn’t chase returns, but instead focuses on making her money last, so she can enjoy her retirement.
Add to that fluctuating market conditions and rising living costs, and it becomes clear why her adviser is building a plan that uses ISAs and pension drawdown to stay tax-efficient, avoids high-risk assets that could erode her capital, simulates different drawdown scenarios to test how long her money might last and keeps enough flexibility to adapt if her needs change.
In previous articles, we explored how our MAF Core and MAF Plus propositions have different risk levels from I to V. That framework allows advisers to match investment strategies to a client’s risk appetite and life stage. MAF Income, however, is structured differently.
Unlike MAF Core and MAF Plus, MAF Income is not segmented by risk levels,. The fund invests at least 70 per cent in bonds issued mainly by companies or governments, denominated in sterling or hedged to sterling. At least 80 per cent of those bond holdings are deemed to be of the highest quality and lowest risk, known as investment grade. The fund may also invest in shares, other funds, cash, deposits and can use derivatives.
A bucketing strategy
For Carol, MAF Income is not the whole solution, but it could be a central building block within a broader retirement strategy. Her adviser might use it to form the core of her income-generating portfolio, complemented by other products.
Segment her retirement pot into distinct “buckets” aligned with her time horizon and spending needs
One approach could be to segment Carol’s retirement pot into distinct “buckets” aligned with her time horizon and spending needs. For example, a short-term bucket, which includes cash and near-cash instruments to cover immediate expenses and provide liquidity. A medium-term, “income-generating” bucket, which includes MAF Income, delivering a monthly income while aiming to protect her money and smooth market ups and downs. And a long-term bucket that includes growth-oriented investments (such as shares) to support later-life needs or legacy goals.
This kind of bucketing strategy helps ensure Carol’s essential expenses are covered while allowing parts of her portfolio to remain invested for future growth. MAF Income plays a key role in the middle bucket – offering diversification, active management, and a consistent income stream that aligns with her cautious risk profile.
To assess how well this strategy might meet Carol’s needs, her adviser could model different drawdown scenarios, testing how long her money might last under varying market conditions, inflation rates, and spending patterns.
The 4 Ls of retirement income planning
One approach to planning income for retirement is that you can broadly categorise financial goals based on their importance and plan how to meet these income needs accordingly. Wade Pfau’s “4Ls pyramid” is an approach that can help advisers assess how much risk a client like Carol can afford when planning for retirement (see Figure 1).
Figure 1: The 4 Ls of retirement income planning
Source: Aviva Investors, Wade Pfau, November 2025.1
The pyramid is broken down into four layers (bottom to top). Longevity, which covers must-have expenses like housing and healthcare; lifestyle, for the fun stuff like travel and hobbies; liquidity, making sure clients have cash on hand for emergencies; and legacy, which is the money they want to leave their loved ones or donate.
Visualising these different financial buckets during client discussions can provide structure, leading to more thoughtful and effective outcomes.
When it all falls into place
Carol’s journey shows how multi-asset funds like MAF Income can play a vital role in retirement planning. It can help advisers meet the specific income objectives of their clients. for clients like Carol, this means turning years of saving into a steady stream that supports the lifestyle she wants in retirement.
In the final article of our series, we’ll meet Luke, a legacy builder who wants his investments to reflect his values, and explore how funds like MAF Stewardship can help clients like him.
