The report, which canvassed 106 independent financial advisers in July, found that 56% of those surveyed view multi-asset options as most suitable for generating retirement income over a 20-year period.
Furthermore, 28% favour using single multi-asset income products rather than multiple income funds spread across various asset classes, while 54% believe that multi-asset funds will become the preeminent income option in the post-pension freedoms environment.
When it comes to fund selection, the vast majority of IFAs put paramount importance on charges when evaluating the suitability of funds, with 87% viewing fees as the biggest influential factor, followed by 69% citing frequency of income.
Increasing auto-enrolment has seen multi-asset funds grow in popularity among working people saving for retirement, as suggested by 71% of IFAs. Two-fifths – 20% – cited multi manager funds, while 20% highlighted diversified growth products.
“As people live longer, being able to drawdown income post retirement becomes more and more important,” said Sonja Laud, Barings’ head of multi asset income.
“Our research has clearly demonstrated the value that IFAs place on multi asset funds and in particular the levels of income they can provide post retirement.”
The study comes after a Barings report revealed prior to the pensions changes that 41% of IFAs surveyed intended to increase their clients’ allocation to multi-asset options.
