Advisers busier than ever due to pension freedoms

UK advisers are spending more time and resources dealing with retirement advice since the launch of pension freedoms, according to the latest research from AKG.

AKG, an independent organisation specialising in the assessment, ratings, information and consultancy to the financial services industry, published its 2018 pension freedoms paper on 6 June.

A key finding is that advisers have never been busier, with 77% saying they are spending more time and resources on the provision of retirement advice since the launch of freedoms.

Further, in terms of new business expectations, most advisers (67%) feel that it will come from at-retirement clients with funds of £100,000 to £250,000.

Advisers’ main investment/planning concerns for their clients at or post-retirement were investment volatility (48%), running out of money (45%) and sequencing of investment return risk (41%).

Caught by surprise

Matt Ward, communications director at AKG, said: “Without exception, the pension freedoms changes caught people by surprise.

“The changes have also coincided with a wider period of regulatory and political change and challenge. So, what has been seen initially is three years of adjustment to the new freedoms with further work to be done in 2018/19 and beyond, to then really capitalise on it.

“Companies across the market must continue to learn quickly from those customers experiencing the initial stages of pension freedoms, and adapt their propositions accordingly, to better target future business opportunities and to help people achieve positive outcomes,” Ward said.

AKG’s initial pension freedoms paper was issued in July 2015.

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