Nearly three quarters of advisers are set to have a centralised retirement propositions (CRPs) in place in the coming year.
According to new research carried out by NextWealth on behalf of Ascentric, just under half of advisers (48%) currently have a CRP in place, and this figure is expected to rise to 71% by 2021.
The results showed that advisers are increasingly of the view that CRPs offer a framework that can be used to deliver advice, Ascentric said, with 35% stating they chose a CRP because they offer benefits to clients, while a quarter (24%) said they increase business efficiency. Almost one-fifth (18%) said CRPs help them meet regulatory requirements.
The research also found that nearly three quarters of advisers (73%) are segmenting their client banks, with clients’ level of assets found to be the most popular method of segmentation. While only a third said they adopted a different segmentation approach for retired clients, the evidence suggested that a larger proportion of advisers differentiate their service for retired clients, including extra meetings with more frequent capacity for loss and risk tolerance reviews.
In addition, nearly all of the 200 advisers surveyed said they had experience of managing vulnerable clients, with only six saying they hadn’t dealt with a vulnerable client.
Jo Kite, head of proposition and marketing, Ascentric, said that with clients seeking retirement advice making up 60% of advised clients, CRPs can play an important role in helping advisers to deliver this type of advice more efficiently and consistently.
Kite said: “Most importantly, advisers told us it can deliver real client benefit and if we think of a CRP as a framework rather than an inflexible ‘sausage factory’ approach, it’s hard to see any reason not to adopt. This could be particularly the case as advisers help clients plan for a sustainable retirement income against a background of the volatility experienced from COVID-19.”
Heather Hopkins, managing director, NextWealth, added: “Our research with Ascentric confirms that a CRP does not equate to an overly restrictive approach to financial planning. Instead, a CRP is a framework in which firms offer retirement advice. Firms that have adopted a CRP see it directly benefiting clients and driving efficiency in the firm. As more firms see the benefits of a CRP, I have no doubt we will see greater adoption across the profession.”
