Clients are choosing to work longer or defer accessing their retirement savings in response to the challenging economic environment, new research from Aegon UK has revealed.
Research carried out by NextWealth for Aegon UK asked advisers what changes they had seen in client behaviours over the past 12 months due to the economic climate. The majority of advisers (68%) said clients were opting to work longer and/or delay accessing their retirement savings, while 61% have seen clients withdrawing more from their overall savings.
A similar number (59%) reported clients reviewing the amount and timing of passing wealth to the next generation, while 53% said clients wanted to decrease their level of investment risk, although 36% noted they had seen clients increasing their investment risk.
A further 53% said their clients were looking to guarantee some income through a combination of an annuity and drawdown.
Steven Cameron, pensions director at Aegon UK, said the research highlighted how “widespread” behavioural changes are, with most people impacted by the recent economic conditions.
Cameron said: “It is interesting to see that different clients respond in different ways. While 53% of advisers have seen some clients reduce investment risk, 36% have seen clients take the opposite course of action to increase investment risk, perhaps to seek higher returns.
“The recent high interest rate levels and the corresponding rise in annuity rates may also have led to more clients seeking to guarantee some income, including through combinations of annuity and drawdown.
“Overall, the research paints a picture of many clients changing their behaviour around retirement, but in a wide variety of ways. This shows the important role advisers play in tailoring their advice to individual needs and preferences, particularly amongst those approaching or in retirement.”
