A total of 77 per cent of advisers have said that they are spending more time and resources on the provision of retirement advice since the launch of the pension freedoms.
According to AKG’s 2018 pension freedoms paper, Grasping the nettle: Working together to achieve better retirement outcomes, advisers have highlighted that there is a need for further development of service and product solutions in 2019/20 and beyond.
In regards to new business expectations, 67 per cent of advisers surveyed said that new business will come from at-retirement clients with funds of £100,000 to £250,000 and 48 per cent said at-retirement clients with over £250,000 funds.
The paper, which was sponsored by Prudential and Standard Life, also indicated that advisers’ main investment and planning concerns for their clients at-or post-retirement are investment volatility (48 per cent), running out of money (45 per cent) and sequencing of investment return risk (41 per cent).
The key requirements for providers to be successful with advisers in the pensions and retirement market are service delivery standards, (58 per cent), range of product and fund solutions (54 per cent), financial strength and sustainability (48 per cent) and digital online capability and functionality (45 per cent).
Furthermore, advisers stated that the key areas they’d like to see improved in the pensions/retirement market during 2018/19 were drawdown products (46 per cent), guaranteed capital/income solutions (31 per cent) and 29 per cent stated that the cost of products, funds and portfolios should be improved.
AKG communications director Matt Ward said: “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.
“But we have already seen that it won’t all be one-way traffic in terms of opportunities realised, and that there will be challenges and casualties along the way.
“The key to successful manufacturing and distribution will be intrinsically linked to the key retirement planning considerations for customers. Companies must therefore take heed of the concerns and requirements of their prime audiences – financial advisers and the end customer.”