Pension planning concerns grow among UK financial advisers

Added 6th July 2016

British financial advisers are becoming increasingly concerned about making retirement income recommendations following the launch of pension freedom rules, according to MetLife.

Pension planning concerns grow among UK financial advisers

Its study found 22% of advisers are uncomfortable with clients insisting on decisions against their recommendations since George Osborne heralded a wave of radical UK pension changes in his spring 2014 Budget.

A particular worry centres on the increased flexibility over fund choice which around 87% of those advisers surveyed fear may make clients take decisions they will regret.

Concern about clients running out of money came second only to concerns about consumers facing unnecessary tax bills, with around 93% of advisers wanting more clarity on tax rules.

The research into financial advisers was conducted online by independent company Pollright among a sample of 104 retirement and investment specialist advisers in March 2016.

Retirement saver research

Metlife also commissioned research of retirement savers which it said showed grounds for the concerns expressed by the financial adviser community, with 11% saying they planned to take all their pension savings as cash while 12% were considering turning final salary schemes into cash.  

This research was conducted online between 29 and 31 March this year among a nationally representative sample of 1,075 employed adults aged 18-plus by independent market research firm Consumer Intelligence. 

Simon Massey, wealth management director at MetLife UK, said it was worrying that so many advisers have had cases since the launch of pension freedoms where they were uncomfortable with the recommendations they made.

“It highlights the desperate need for more innovation in retirement income solutions that can deliver the combination of certainty and flexibility that is so important following the launch of pension freedoms. Guarantees have a major role to play in delivering that.”

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Mark Battersby

Editor, International Adviser

International Adviser

Mark Battersby is editor of International Adviser. He is also programme director for International Adviser events in strategic expat locations around the world, and its flagship FundLinks conference in London. Mark joined Last Word Media in February 2012, having previously worked at Citywire, Interactive Investor International, and FT Business.

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