Advisers expect rise in corporate pensions business post-RDR
Employer pensions will likely be the area of business with the greatest increase in significance for advisers post-Retail Distribution Review, while the proportional volume of tax-wrapped investments and retirement income is likely to decrease.
According to financial research company Defaqto, the percentage of business devoted to employer pensions will grow from 6 to 16 per cent after RDR, while that focused on tax wrapped investments and retirement income will fall from 21 to 13 per cent and from 14 to 6 per cent respectively.
Results of the survey of 161 advisers also suggested that non-tax wrapped investment business will grow from 16 to 20 per cent.
Fraser Donaldson, insight analyst for funds at Defaqto, said: “One of the key challenges facing advisers as they prepare for RDR implementation is deciding on the service proposition they plan to offer from 2013.
“Interestingly, our research has identified a potential shift in the type of businesss that advisers expect to focus on in the new distribution era, which suggests that change may be on the horizon.”