Retirement specialist Just Group has arranged a new strategic partnership with asset manager Invesco to launched a retirement solution designed to sit within a SIPP.

It will bring together Invesco’s model portfolio service (MPS) and Just Group’s guaranteed income producing asset, delivered through its secure lifetime income solution.

Together they aim to offer Financial Planners and advisers access to a flexible proposition aimed to meet the needs of modern-day retirees.

The firms said the proposition will provide uncorrelated guaranteed income while lowering the dependence on withdrawing income from a growth portfolio through retirement. 

Just Group’s secure lifetime income is designed to sit within a SIPP, helping advisers to mitigate key retirement risks, such as longevity, sequencing risk and unknown life events.

Kate Dwyer, head of UK distribution at Invesco, said: “We believe Invesco can play an important role in driving innovation and supporting advisers when it comes to managing the risks to their clients’ income during decumulation.”

She said the two propositions, currently only available separately, will work together to give advised clients the option to have the guaranteed income of a secured lifetime product while getting the potential growth benefits of a model portfolio, with the flexibility to reinvest the income they don’t immediately need.

Kavi Myladoor, retail retirement income director at Just Group, said: “The suitability of investment portfolios to support clients who are spenders, rather than savers, is in focus and under scrutiny by the conduct regulator.

“The needs of these clients and the investment risks they face are very different when taking an income and continuing to invest for growth. They need retirement focused investment solutions.”