A smarter approach to retirement investing

At Aviva Investors, we understand that retirement is not the end of the investment journey—it’s the beginning of a new phase. Our Retirement Portfolios are designed to help your clients draw a sustainable income while managing the key risks that come with decumulation. 

Why choose Aviva Investors Retirement Portfolios?

We have three portfolios designed for different income needs, achieved through a combination of natural income and growth. With the retirement portfolios, your clients can: 

  • Take flexible income from their portfolio
  • Calculate the probability of maintaining a given level of income throughout their retirement

  • Target a specific value at the end of retirement for legacy planning

What are the key features of Aviva Investors Retirement Portfolios?

Built for retirement

Our portfolios are specifically constructed to address the unique challenges of retirement investing—longevity risk and sequencing risk.

We blend a wide range of global asset classes aiming to deliver income sustainability and capital preservation, using a different asset allocation approach to that of a typical accumulation portfolio. 

Natural income generation

We allocate to assets that generate regular income —such as equity income, defensive income, and alternative income— that can be paid directly into the client’s platform cash account.

This helps to reduce reliance on unit encashments, to reduce the impact of market volatility on client outcomes. This is also known as sequencing risk, which we explain in more detail below. 

Probability-based outcomes

Using advanced modelling, we provide insights into the likelihood of different retirement outcomes.

This helps you and your clients make informed decisions about income levels and legacy potential. 

Three actively managed portfolios to suit different income needs

retirement solutions

Equity Income: Has the potential to drive each portfolio’s capital growth, while generating an income. Typical assets include global and regional equities.

Defensive Income: Aims to protect the value of investments and manage risk and includes cash, government bonds and lower-risk corporate bonds.

Alternative Income: Has the potential to diversify growth opportunities outside of traditional asset classes. This includes absolute return funds, REITs and listed infrastructure as well as higher-yielding fixed income.

 

Typical retirement is an average of 20-22 years.

Source: Office for National Statistics 12/01/2022 "Past & projected period and cohort life tables: 2020 based, UK, 1981 to 2070.

This diagram is for illustrative purposes only and the information provided is provisional and subject to change.

*The Sustainable income withdrawal percentage is an annual withdrawal amount based on the starting portfolio value. 

Retirement investment challenges

What is longevity risk? 

Put simply, longevity risk is the risk of outliving pension savings.  Life expectancy has been increasing in the UK (which is good news) but this is putting greater pressure on pension savings to last for an increasing number of years in retirement.  

By investing for the long-term and paying close attention to sequencing risk (which we explain next), this can help to reduce the risk of pension savings running out. 

What is sequencing risk? 

Again put simply, sequencing risk is the risk of withdrawing your pension savings during market downturns, which can negatively impact a portfolio’s longevity. Weak or strong periods of performance coupled with the timing of when pension withdrawals are made can affect the long-term value of the portfolio.  

In the early years of retirement, taking withdrawals during a weak period of performance can result in pension savings being depleted faster than expected. By managing the variability of returns, this can help reduce the risk of withdrawing at the wrong time. 

We explain these challenges in more detail in our Retirement Portfolios brochure, accessible below. 

Insights

Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.

Key risks

For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.

Investment and currency risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.

Emerging markets risk

Investments can be made in emerging markets. These markets may be volatile and carry higher risk than developed markets.

Equities risk

Equities can lose value rapidly, can remain at low prices indefinitely, and generally involve higher risks - especially market risk - than bonds or money market instruments. Bankruptcy or other financial restructuring can cause the issuer's equities to lose most or all of their value.

Fixed income risk

Investments in fixed interest securities are impacted by market and credit risk and are sensitive to changes in interest rates and market expectations of future inflation. Bonds that produce a higher level of income usually have a greater risk of default.

Multi-asset expertise

Meet our multi-asset team.

Contact us

Our distribution team is here to help with any questions you may have.

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Explore Aviva Investors Income funds

Aviva Investors Global Equity Income Fund (OEIC)

A concentrated, high-conviction fund that focuses on a diverse range of opportunities outside of the traditional income sectors and aims to deliver growth as well as a yield that is 1.25x higher than the MSCI ACWI.

MAF Income

An actively-managed global multi-asset fund that aims to pay a monthly income while growing your clients’ money over the long-term.

Explore Aviva Investors Multi-Asset funds

MAF Core

Low cost without compromising on quality: five risk-rated funds designed to give your clients a simple way to grow their investments.

MAF Plus

Five multi-asset funds with a more tactical and active approach than our Core solution. Each invests in a wider range of asset classes to give your clients more diversification. 

MAF Stewardship

Risk-profiled multi-asset portfolios with a focus on Climate, Earth and People. For clients who put stewardship at the heart of investing.

MAF Income

An actively-managed global multi-asset fund that aims to pay a monthly income while growing your clients’ money over the long-term.

Important information

THIS IS A MARKETING COMMUNICATION

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited ("Aviva Investors"). Unless stated otherwise any opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

The Aviva Investors Retirement Portfolios comprise of three Model Portfolios (together the "Aviva Investors Retirement Model Portfolios"): Aviva Investors Retirement Portfolio I, Aviva Investors Retirement Portfolio II, and Aviva Investors Retirement Portfolio III.

Issued by Aviva Investors Global Services Limited. Registered in England and Wales No 01151805. Authorised and regulated by the Financial Conduct Authority. Firm Reference No 119178. Registered address: 80 Fenchurch Street, London, EC3M 4AE. An Aviva company.