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Top 3 client challenges according to financial advisers

7 December 2017


New research from Aegon UK reveals the top three challenges facing financial advisers’ clients are understanding all the options available for them to invest their money, how to create a retirement income, and saving for retirement.

According to the ‘Adviser Attitudes Report: a spotlight on advisers’ clients’, 70% of advisers see navigating investment options as the biggest challenge for their clients. Notably, as the shifting landscape since the pension freedoms has created a wealth of investment options, with the move from Defined Benefit (DB) to Defined Contribution (DC) schemes continuing at pace.

The findings also reveal that more than half (54%) of advisers anticipate greater demand for investment advice over the coming year, with one in ten expecting a significant spike.

Looking at the challenges facing clients, six in ten (60%) advisers see creating a retirement income as the second most common issue, with a similar number (58%) identifying the ability to save for retirement.

The increased freedom and responsibility for securing retirement income has created a growing demand for advice, with the number of retirees opting for income drawdown having more than trebled since the introduction of pension freedoms.

According to the Adviser Attitudes Report findings, advisers estimate that, of their clients who have retired recently, more than half (56%) were happy to have their retirement savings fully exposed to the stock market via drawdown.

Fewer than one in five (18%) were prepared to give up control of their savings in favour of a guaranteed income solution such as an annuity.
The average client is calculated as age 56, with a salary of £75,000.

Commenting o the findings, Steven Cameron, pensions director at Aegon said: “The unrelenting pace of change in the retirement landscape is making it more difficult for consumers as they look to make the big decisions which will affect their financial futures. And in the wider investment world, there’s a huge number of new investment and savings options on offer for those at all stages of life.

“This is where advisers add real value. Whether it be protecting wealth, generating growth, or securing an income in retirement, the specialist knowledge and insight offered by advisers means that they are well placed to help clients through this challenging investment environment.”



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