Client acquisition has become easier for advisers as the pandemic eases and demand for retirement advice increases, according to Aegon and Next Wealth’s latest retirement advice report.
The report ‘Managing Lifetime Wealth: retirement planning in the UK‘ showed less than a third (32%) of advisers said that it was more difficult to acquire new clients during the pandemic, compared to over half (57%) who said the same during the first year of the pandemic.
Meanwhile, almost half of advisers (47%) said demand for retirement advice had increased more than usual due to the pandemic, an increase from 40% compared to the previous year.
Changing attitudes to work are driving demand as clients reassess their priorities in the wake of Covid-19, the report showed. More than half (51%) of advisers have witnessed an increase in clients retiring early.
The events of the past two years have also fuelled a renewed focus on health as well as wealth. More than three fifths (61%) of advisers said clients are now more focused on their health and longevity than prior to the pandemic and 60% had seen an increase in clients updating their wills and trusts.
Ronnie Taylor, chief distribution officer at Aegon, said: “Demand for retirement advice has been increasing since the introduction of the pension freedoms, and the pandemic has further demonstrated the value of advice in this area. Over the last two years, individuals have increasingly reassessed priorities and long-term plans and have been prompted to focus more on health and longevity.
“The research points towards an increase in early retirement during the pandemic. We’ve become used to a volatile stock market in recent years and the research shows there is growing sophistication in the use of retirement planning tools to support safe withdrawal strategies. The uncertainty around the economic outlook with rising interest rates and high inflation means the robustness of financial plans is expected to be tested further.
“The transition to remote meetings and the huge acceleration of digital processes has opened up new opportunities for advisers as an alternative means of communication with clients. However, face-to-face meetings remain an important part of developing new relationships so it’s understandable the relaxing of social mixing restrictions has made client acquisition easier.”
Heather Hopkins, managing director at Next Wealth, commented: “The Covid pandemic has fuelled demand for retirement planning advice as people re-evaluate priorities and look at options to retire early. Half of financial advisers told us that they have seen an increase in the number of clients looking to retire early through the pandemic. The complexity of this decision underscores the value of professional financial advice. We look forward to continuing to chart the course of retirement advice in the UK.”
