Overall impact of Pensions Freedoms ‘positive’ for adviser firms
2 April 2018
New research from Retirement Advantage has shown that the majority of advisers feel positively about the pension freedoms.
Over half (54%) of advisers reported an increase in new client enquiries, while 52% have experienced a rise in clients seeking general advice. Meanwhile, one in four (27%) advisers have seen an increase in the number of people looking to transfer their final salary pension.
Only one in 10 advisers were less positive, noting that the regulatory changes had not had a positive effect on their business.
When asked what advisers considered to be the most important impact of the freedom and choice agenda on consumer behaviour, nearly one in five (19%) said increased options. The same number of advisers cited increased flexibility over how they use their pensions.
More people choosing to transfer their defined benefit pensions was listed by 11% of advisers, while 9% had seen more clients ask for advice around retirement decisions.
However, some advisers warned that the biggest impact was clients taking benefits early, with 8% believing that some consumers are spending too much too soon and run the risk of running out of money.
Andrew Tully, pensions technical director, Retirement Advantage, said: “Advisers are a pretty positive bunch when it comes to the impact of the pension freedoms on their businesses, and it is encouraging to see more people seek advice.
‘Freedom and choice has added complexity and risk to retirement decisions, so the changes introduced in April 2015 will only work longer-term if we encourage many more people to use a financial adviser to make sure their retirement plans stay on track.”
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