Wealth management serves
customers over the riches range. Everything except the wealthiest of these
customers have one essential concern is whether they will outlast their
benefits. Numerous financial specialists basically need confirmation that they
can create enough pay in retirement to proceed with their present way of life.
Yet, giving that affirmation is no longer as straightforward as it once seemed
to be; longer futures, the increasing expense of therapeutic care, and worries
about the potential indebtedness of government privilege programs have by and
large shaken these speculators’ trust in their retirement security. For
consultants, giving counsel and arranging around retirement pay is a
staggeringly complex errand. Consultants need to enable their customers to make
various suppositions around portfolio returns, spending designs, expansion,
future assessment rates, life span, lodging costs, medicinal services costs,
the fate of standardized savings and numerous more issues. A blunder in any of
these suppositions could essentially influence a customer’s retirement design.
Regardless of huge endeavors in the course of the most recent decade to enhance
retirement salary arranging administrations, numerous riches administration
firms are still upgraded around offering amassing exhortation as opposed to pay
arranging. Addressing the necessities of customers concentrated on retirement
will require new abilities, including new items, apparatuses and
administrations. Customers require access to a suite of sparing and speculation
arrangements, not simply conventional retirement items, for example, annuities
and characterized commitment designs. To address their customers’ “life
span challenge” riches chiefs must discover better approaches to connect
with customers at a very early stage in their working professions, certainly
before a conventional riches administration engagement would start, and enable
them to adjust their short and long haul money related objectives through savvy
exchange offs. By urging them to spare early and giving guidance, arranging,
items and administrations, riches directors can enable customers to get ready
unquestionably for retirement. As effectively noted retirement arranging is
about a phase of life and not just about assessment conceded accounts. While corporate
plans are a vital segment of an arrangement for retirement, they are just a
single part of retirement arranging. So design suppliers ought to effectively
connect with design members and remind them to take an all-encompassing
perspective of their portfolio, perceiving that a 401(k) is just a solitary
segment of a far reaching retirement design. Retirement design suppliers must
search for approaches to widen member engagement and grow their relationship
into an individual consultative and instructive relationship a long time before
a dispersion occasion. Here, new robo guide capacities may demonstrate
accommodating in scaling up counsel monetarily. Innovation helped ‘Focuses of
Excellence’ where customers can get to qualified topic specialists could help
also. Suppliers of retirement items should contemplate riches administration,
and customary riches administration firms should put retirement and life span
worries at the core of the counsel they provide for financial specialists of
all age gatherings and riches levels.


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Historically low interest rates have slashed
savers’ interest income.

Individuals have been provided more control over
how they save for retirement and create retirement income. But according to
actuarial consulting firm, Milliman, they may “…not have the knowledge,
expertise, or guidance to make those decisions.”

People are living longer. This creates the need
to plan for a long retirement.

The outlook for inflation is uncertain. Higher
inflation make prices increase, so retirees need more income to stay even.

Ever-increasing health care costs make planning
for retirement security a must.

Emotions impact investors’ decision-making.
People can easily lose their long-term focus at a time when maintaining a long
planning horizon is critical.

Whether someone in, nearing, or
decades away from retirement, he faces an increasingly complex challenge —
planning for income to last throughout his lifetime.

More than 25 million Bangladeshis
are over age 65 at the present time. The primary flood of children of post war
America has quite recently started to hit the shores of retirement, and
directly behind them are millions more. The main concern is the likelihood of
outlasting their pay. The genuine test lies in how to use the present monetary
arranging instruments to address their requirement for satisfactory retirement


Assembling a wage arranging
methodology isn’t something that should be possible piecemeal. It takes the
greater part of the budgetary arranging components cooperating to manufacture a
sensible arrangement.


We begin by building up a
composite picture of imagined post-vocation way of life, evaluated fundamental
and optional costs, and stock of potential monetary assets. Prior to the
customer can change this photo into a reasonable guide toward money related
autonomy, in any case, he needs to comprehend and coordinate into their
arrangement five factors that may put him at basic hazard in achieving their
retirement wage objectives:


Many individuals think little of their life
expectancy and hazard outlasting their advantages. The certainties demonstrate
that half of the populace may outlast the “normal” future. A lifetime
salary design enables our customers to plan for living great into their 90s.


The foreseen longer retirements and the
effect of expansion make it more vital than any other time in recent memory
that portfolios incorporate ventures with the possibility to outpace swelling.


Numerous retirees think they require a
moderate portfolio, however given the expected length of their retirement; this
could make an increased danger of outlasting their advantages. One of the keys
to seeking after a man’s objectives may lie in adjusting his pay portfolio with
his development portfolio.


Deciding the best possible withdrawal rate
from person’s portfolio to create a retirement wage is basic — it could
drastically diminish the probability of retirees outlasting their benefits.
This rate is resolved in view of his benefits, his wellbeing, his way of life
and the level of hazard he will take.

Care Expense

Rising human services costs combined with
deficient scope can devastatingly affect a lifetime wage design. Tending to
this hazard may mean focusing on reserve funds particularly for human services
and considering obtaining long haul mind protection.

Steps to a Workable Retirement
Income Plan

Our goal is to help our clients
develop a formal, written plan for managing retirement assets and drawing down
retirement income.















Figure 2: Steps to a Workable Retirement Income Plan


Compensation Models

There exists various ways in
which a financial professional can be compensated. How compensation is received
may affect the advice a client is received, if there arise some hidden
conflicts of interest. The three most common models of compensation are:

?      Fee-Only Compensation – This model
minimizes conflicts of interest. A Fee-Only financial advisor charges the
client directly for his or her advice and/or ongoing management. No other
financial reward is provided by any institution—which means that the advisor
does not receive commissions on the actions they take on the clients’ behalf.
Compensation is based on an hourly rate, a percent of assets managed, a flat
fee, or a retainer.

?      Fee-Based Compensation (fee and
commission) – This form is often confused with Fee-Only, but it’s not the same.
Fee-based advisors charge clients a fee for the advice delivered, but they also
sometimes receive payments for products they sell or recommend. In some cases,
commissions are credited towards the fee, giving the appearance of a
lower-priced option, but any outside compensation lessens the advisor’s ability
to keep the client’s best interests first and foremost.

?      Commissions – An advisor who is
compensated through commissions is primarily a salesperson. A client working
with a commissioned salesperson must always ask himself: Is this advice truly
in my best interest, or is it the most profitable product for the advisor?
Unfortunately, often the answer is the latter. In fact, a commissioned advisor
usually is required to put the best interests of his employer ahead of the best
interests of his client.


Revenue Model:

model is consisting of the

Targeted segment.Advisory services.Investment.Return


Target Segment

targeted segment will consist

Mid-class and higher middle class population of
Bangladesh (specially salaried people).



provide necessary advising to achieve the desired retirement goal/vision
according to each individual’s need. Our financial advisors will be the top class
in the country and they will understand the investment scenarios best. Every
customer will get customized plan for their retirement. Our advisors will
deeply analyze and provide both short-term and long-term consultancy for their
customers. Whether a customer chooses to go for a world tour or a luxurious
house/car, s/he is covered in our hand.






Figure 3: Base Product Model











Product Models

Bangladesh around 20% people fall into the middle class category who has an
annual income of at least $5000 according to Bangladesh Institute of
Development Studies (BIDS). This is a huge market as these people tend to be
ambitious and they don’t have any viable choice to get advice on their
retirement plans.

have 3 types of products for these people. We will assume different scenarios
and explain the compatibility below:


Pension Saving for the people
who’ll only need time to time advising and planning.

This will be
offered to the people who have short term desires. Someone who wants to buy a
luxurious car, or want to give a world tour will fall in this criterion.
Customers will seek for our advice on his particular desire. We’ll calculate
their current wealth and propose an amount to save for the package. Every month
when he/she receives his salary a specific amount will be deducted and
deposited in the retirement account. Customer will pay us only for the advice
and nothing more. We’ll help them choose the best option according to their
preferences. Fees will be variable depending on individual’s wealth and the
amount of effort our advisor will need to give to prepare full plan.



Figure 4: Pension Saving










Guaranteed Annuity for the people
who need time to time advice and planning.

This will be more
suitable for the people, who want a regular monitoring and advising on their
running wealth. Fess will be collected half-yearly and a regular monitoring
will be established for the retirement fund. If the fund is not accumulating as
per plan, then the plan will be revisited and adjusted like in a case of
inflation. Customer will be notified regarding their account’s status every


At the point when
people resign, they have to ensure that they have enough cash to last whatever
remains of their lives. Along these lines, as an end-result of a few or their
whole benefits subsidize, a Guaranteed Annuity can pay them a safe, general pay
forever, regardless of to what extent they live. A Guaranteed Annuity might be
a sensible method for covering their settled everyday costs in retirement,
close by their benefits (if appropriate) and some other wellsprings of salary.
The drawback is that, in the event that they put all their cash into a
Guaranteed Annuity, they won’t have saves for unanticipated costs (like paying
for another TV or separated auto) or for treats (like occasions).


Once a Guaranteed
Annuity has begun, they won’t have the capacity to roll out any improvements to
their installment recurrence or advantages. Also, expansion may diminish how
much their salary is worth throughout the years.














Pension Drawdown for those who
have idle money lying around and want someone reliable to maintain their
wealth. Fee will be on the profit only.

This will be a
benefit based model. This will be relevant for the general population with sit
out of gear cash like the best level corporate administrators and who needs a
decent return at the time or after their retirement. Consistently a specific
sum will be deducted from the client’s record and put into a portfolio or a
venture. A yearly membership expense will be deducted from the record as a
charge. Additionally a commission will be charged subsequent to accomplishing
specific level of benefit on the contributed sum. On the off chance that any
misfortune is happened we’ll additionally bear a segment of the misfortune and
repay the customer.


This gives
clients more control over their reserve funds. They can take a normal pay and
have unlimited access to their cash. They can designate their cash, with the
guide of their monetary consultant who may be us, to stores that are put
resources into shares, bonds, property and other budgetary ventures. This will
give them an opportunity to develop and counter the impact of expansion.


there is the potential hazard that the ventures are not executing and in
addition trusted. In the event that somebody put the greater part of his/her
cash into this, s/he may chance coming up short on cash if her/his pay or
withdrawals are in abundance of store development. So before considering to put
all the cash into this plan it is smarter to reexamine the reality and we will
dependably be there to give an elaborative view on speculation opportunity and
the dangers related with continuous venture.




Figure  SEQ Figure * ARABIC 6: Commission based


Figure 6: Pension Drawdown










Adjustment and re-investment:

will have the capacity to profit any or the majority of the 3 models. Rather
than choosing between any of the item, The Retirement Account enables them to
consolidate one, two or even each of the three in a similar place. They can
have the security of a Guaranteed Annuity to cover their ordinary living
basics, for example, sustenance and service bills. It additionally furnishes
them with the alternative of simple access and open door for development of
their Pension Drawdown stores – meaning they would be prepared forever’s sudden
costs and intermittent treats. Another choice is that, they can just set their
cash aside as Pension Savings until the point that such time as they need to
begin taking advantages. However the estimation of speculations can go down and
also up. All parts of the record can give the capacity to leave cash to friends
and family.



Figure 7: Adjustment and re-investment




A snapshot of the offerings

The capacity to take up to 20% of client’s
benefits subsidize as a tax-exempt singular amount, with finish opportunity
what s/he jumps at the chance to do with the rest.

The decision of the amount of client’s cash will
be put resources into Pension Savings, Pension Drawdown and how much will be
utilized to buy a Guaranteed Annuity.


The clients have the adaptability to adjust
their record as time passes by. For instance, they may put the majority of
their cash in Pension Drawdown at first, yet then step by step move assets to
the Guaranteed Annuity as they get more seasoned.


The adaptability to change Pension Drawdown and
Guaranteed Annuity salary levels as indicated by the way of life and budgetary
arranging needs of the clients.


The capacity to take out single amounts from
Pension Drawdown at whatever point the clients need, to top up their pay, or
for those sudden circumstances when some additional cash is required.


A scope of completely examined stores which can
be utilized for speculation as per client’s inclination whenever.


The capacity to pass on cash to clients’ friends
and family. What’s left in their Pension Drawdown or Pension Savings can be
passed on to whoever they longed for. On the off chance that they pick the alternative
to ensure a few or the majority of the salary in their Guaranteed Annuity, that
can be passed on as well.

The Retirement Account

Pension Savings: How it works

Pension Savings
enable clients to reach in the position from where they can accomplish retirement
benefits. They can pick whenever to move some of these assets into Pension
Drawdown or Guaranteed Annuity to give retirement benefits (counting up to 20%
tax-exempt single amount). They can contribute their cash which furnishes them
with the open door for development. However, there is a worry that they would
not have the capacity to take standard salary or pull back cash specifically
from Pension Savings.

Pension Drawdown: How it

With Pension
Drawdown the customers can take as much or as little of their money as they
want while it remains invested. So they can take no money out and leave their
funds invested, or they can take a regular income and/or withdraw money from
their fund when they want.

Guaranteed Annuity: How
it works

Customers choose to purchase a Guaranteed Annuity within their Retirement
Account, the income they would receive will depend on a number of things

The size of their pension fund used to buy the
Guaranteed Annuity

Their age and personal circumstances (for
example where they live, their lifestyle or medical history)

They will need to choose how they
would like to receive their income, for example whether they want it to stay
the same or rise in accordance with inflation. They will  also need to decide if they wish to make
provision for loved ones in the event of their death. This provision could be
in the form of an ongoing income for the rest of their life or a lump sum or
both. They can also select how often income is paid – monthly, quarterly or yearly.
Income will be paid in arrears – which mean we will pay them at the end of
their chosen period. Once a Guaranteed Annuity has started, they won’t be able
to change the amount of income, payment frequency or benefits. The Retirement
Account allows them to buy more Guaranteed Annuity whenever they want using any
Pension Drawdown funds. They can also reinvest their Guaranteed Annuity
payments into their Pension Drawdown fund. They may do this for tax planning

Choosing investment funds

What we offer:

The Retirement
Account offers a range of investment choices, including an option of both
passive and actively managed funds. These funds may invest customers money in
shares, bonds, property and other financial investments. The mix of assets in
the fund will determine the balance between the potential risk and reward. The
same range of funds is available to both Pension Drawdown and Pension Savings
options but they can choose to invest in different funds for each part if they
wish. If at a later stage they decide to move some of their money from Pension
Savings to Pension Drawdown then the funds they selected for Pension Savings
will continue to be used unless they instruct us otherwise. Their financial
adviser (dedicated to a customer by us) will discuss their investment
preferences with them and select funds that match the type of investor they

Passive funds:

            Passive funds aim
to follow the value of a stock market index or group of indexes. This tracking
is largely automated, so it’s less expensive and passive funds tend to charge
less than actively managed funds.

Active funds:

Active funds are
managed by a specialist investment manager, or team of specialists who have a
certain amount of freedom over the specific investments they make. They use their
knowledge and experience to try and beat the returns an individual could get by
investing in passive funds.

Protected funds:

Protected funds
invest in assets that have the potential to grow customers’ money over the long
term. But they also come with another valuable feature, a degree of protection
from the ups and downs of the stock market.

Monitoring Performance:

The customers
can check how their chosen funds are performing on our website. Also, each
year, we will send them a statement showing the value of their funds. All of
The Retirement Account funds have been thoroughly researched and have been
carefully selected by Retirement Advantage, and an independent investment
research business. Our investment specialists monitor the funds on a monthly basis
so they can relax, knowing that their investments have the best opportunity to


Meet Kaiser

Kaiser is a government university
professor. Kaiser’s aged 65, married, with a Tk. 10,000,000 personal pension

He would like Tk. 300,000 a year
guaranteed income to pay for life’s essentials and an extra Tk.500,000 income
on top to help with holidays and nice to haves.

His financial adviser suggests
that Kaiser takes out a Retirement Account and using his Tk 10,000,000
investment he:

Buys a Guaranteed Annuity with Tk. 4,500,000 of
his investment. This provides her with the extra Tk. 300,000 a year of secure
lifetime income.

Uses the remaining Tk. 5,500,000 to invest in
Pension Drawdown taking Tk.500,000 income.



Figure 8:
Meet Kaiser


















With his adviser he chooses an
investment fund that suits his conservative attitude to risk. He hopes that his
Pension Drawdown funds will grow over time. His adviser explains that The
Retirement Account is flexible enough to deal with changing circumstances in

The money in Pension Drawdown
could be paid as a lump sum on his death.


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