A game-changing offering from Pathlines in collaboration with Guiide and Invesco is set to transform this by giving defined contribution savers access to self-service guidance tools to manage their drawdown, whether they are near, already at or post-retirement.
This first-of-a-kind guidance-based platform builds on the free holistic planning tool that retirement planning fintech Guiide has offered for the past three years.
The tool has helped savers understand how to withdraw money from their defined contribution pension pots in a tax-efficient way, to achieve their goals and ensure they never run out of money.
Now, Guiide’s user-friendly sustainable retirement plans can become a reality thanks to global asset manager Invesco and newly rebranded UK SIPP provider Pathlines.
For pension savers who want to manage on their own but don’t have the confidence or knowledge to make informed decisions—likely to account for around half of retirees given the number of people not currently taking advice at retirement—these self-service guided drawdown tools give them the expertise they need to manage their savings safely and effectively.
After a decade of Pension Freedoms, this has been long overdue.
Christine Hallett, CEO of Pathlines Pensions UK Ltd, said: “Pathlines is centred on helping individuals take control of their financial future by empowering them to shape their path to retirement. Our mission is to make retirement planning more accessible, personalised, and effective.
We’re proud to partner with Guiide and Invesco to deliver this innovative solution for those at the very beginning of their retirement journey. Together, we’re creating smarter, more flexible tools to support long-term financial journeys. Our senior team is committed to driving continued innovation, and we look forward to playing a leading role in shaping the future of the retirement planning marketplace in the months and years ahead.”
Ruston Smith, Chairman at Guiide, said: “Four years ago, we first launched Guiide. We had identified a need to support people thinking about their retirement income needs and how to use all their pensions and non-pension savings to deliver them.
Given that only around half of retirees use an IFA in drawdown, we aimed to offer clear and simple guidance to help savers make sense of retirement and get the best outcome possible.
The feedback has been very positive, showing we are meeting this aim. This new unique proposition has similar aims, to turn the sustainable plans built into a reality as simply as possible for the non-advised. We hope it will be equally well received and reduce the risks of drawdown for many.”
Georgina Taylor, Head of Client Investment Solutions for EMEA at Invesco Ltd, said: “We are delighted to be working with Guiide and Pathlines to provide the investment building blocks for their retirement offering. Decumulation is a core strategic objective for us as a firm, and this collaboration provides the next step in our decumulation journey.
We firmly believe that working together to deliver better retirement outcomes is a responsibility for everyone across the financial services industry, and we want to play our role as an asset manager to provide a product suite that supports investors throughout their retirement journey. Cashflow planning tools such as Guiide help play a critical role in ensuring there is a robust retirement platform in place for everyone, regardless of the way that they choose to access savings and retirement products.”
How does it work?
Before starting, the saver must create a sustainable plan within Guiide and set out the expected withdrawals from their defined contribution pots. These monthly withdrawals (cashflows) may be variable depending on what other income and non-pension savings are used within the plan. They do this through Guiide’s easy-to-use online portal.
After consolidating their pots with Pathlines, savers can then link their cashflow plan in Guiide to their Pathlines account. This allows the cashflows to be paid automatically every month as a base income, just like a wage, until the end of each tax year. Savers can then review and revise their plan for the following year and adjust if necessary.
While this provides a base income, no flexibility is lost: a retiree can still request ad hoc lump sum payments if needed at any stage. Even better, they can go to Guiide and see the effect of any lump sum withdrawal on the long-term sustainability of their plan before proceeding.
Because there is clarity on future cashflows, Pathlines can split a retiree’s pot into three Invesco funds designed for cash payments, earlier income payments and longer-term growth, depending on their requirements and what stage they are at on their retirement journey.
When will it be available?
The first version of these innovative guided drawdown tools will only be offered initially to consumers through guide.co.uk. All parties involved are working towards a July launch.
This will be available to anyone over 50 who is not currently accessing their pension pots. Later versions will be available for those under 50 and those already in drawdown.
There is also a plan to launch a version for couples, helping solve the income needs for an overall household, as well as the potential for incorporating other flexible non-pension payments, such as ISA and GIA withdrawals, into the offering at a later date.
Other fund allocations may also be added at a later date, such as illiquid funds that have higher expected returns and the longest dated cash flows. This can help reduce financial risks associated with living longer than expected or needing to cover care costs in later life.
With the initial offering launch and later innovations, Pathlines, Guiide, and Invesco hope to change the face of non-advised drawdown from 2025 and improve as many retirement outcomes as possible.
