“How much can I spend?” This question lies at the heart of so many conversations between a retiree and their adviser. Although not explicitly stated, this simple question ties in to so many other related concerns – Can I spend enough to be comfortable? Will I run out of money? What are my options if my health deteriorates? What about bequests?

All these questions boil down to one thing – a craving for certainty. While this is understandable from the client perspective, the key challenge for the financial advice industry is how much certainty can we provide in answering these questions, and how do we manage client expectations.This thought piece looks at the factors driving this desire for certainty, and different solutions to the expectations gap between what clients want and what advice can provide.

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