Medical advances serving to drive demand for retirement recommendation

An ageing inhabitants and medical advances are fuelling demand for retirement recommendation, in line with a brand new report.

Two thirds (67%) of advisers surveyed by NextWealth listed these drivers as probably the most prevalent components behind rising demand.

The difficult financial atmosphere was additionally an element spurring demand for recommendation, with 58% of advisers surveyed saying it was rising demand for his or her providers.

Present pensions and tax guidelines and allowances, together with the abolition of the Lifetime Allowance and will increase in annual allowance guidelines, have been additionally cited as driving demand by 49% of advisers.

The record of things suppressing demand was topped by the affordability of retirement recommendation, with 19% of the adviser surveyed citing it.

Damaging publicity over retirement recommendation was additionally cited as a suppressor of demand by 17% of advisers.

Steven Cameron, pensions director at Aegon, who sponsored the report, mentioned: “Affordability stays a barrier to retirement recommendation, with a rising “recommendation hole”. The FCA and Treasury are at the moment consulting on the Recommendation Steerage Boundary Assessment, providing a possibility to discover simplified recommendation options and focused assist for these at the moment priced out of receiving assist.

“Advisers are additionally conscious that unfavorable headlines and regulatory change such the FCA Client Obligation may depress demand. Whereas the Client Obligation could also be including new issues to the availability of recommendation, we hope that long term it is going to additional enhance confidence amongst customers that the recommendation they’re receiving is of persistently good worth.”

The FCA is proposing to open the door to tens of millions of customers receiving ‘monetary steerage’ on their private funds which stops wanting regulated monetary recommendation.

The regulator says its new proposals will give many extra individuals the flexibility to obtain ‘simplified recommendation’ on their investments and pensions.

Steerage suppliers will be capable of give savers suggestions and concepts on find out how to make investments their cash however should not present personalised recommendation.

The FCA mentioned its proposals to chill out the strict boundary between recommendation and steerage would offer “larger assist” for individuals’s monetary selections.

Heather Hopkins, managing director of NextWealth added that the report demonstrates that retirement recommendation, “stays a cornerstone of Monetary Planning”.

• NextWealth surveyed 220 monetary advisers in November and December 2023.


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