Clients endorse adviser product expertise: poll
Research commissioned by MetLife showed nearly 88 per cent of clients said this year they understand and value income and capital guarantees in products, compared with 83 per cent in 2011 and 79 per cent in 2010.
Dominic Grinstead, managing director of MetLife UK, said the rise was driven by the increased experience and expertise of IFAs advising on guaranteed retirement and investment products.
The research found 74 per cent of clients rated their IFA as very good or excellent in providing clear product information, while 73 per cent said advisers were very good or excellent at highlighting the benefits of guarantees.
The majority of clients, 70 per cent, said advisers were very good or excellent at pointing out the potential risks associated with guaranteed products.
Mr Grinstead said: “There is a real need for certainty when planning for retirement and guarantees have a key role to play along with other products. This is demonstrated by the increase we have seen in client satisfaction with guaranteed products.”
Meanwhile, a MetLife report on the finances of 50 year olds, dubbed the ‘Uncertain Generation’ showed men earn an average £30,000 compared with just £19,000 for women.
Mr Grinstead warned that this meant women entering retirement were facing an £11,000 pensions gap, compared with men.
Kevin Tooze, managing director of Essex-based Equity Partners UK, said: “Capital guaranteed products are an easy sell. It becomes appealing in a volatile market, but you have to look at what is really guaranteed. You also have to consider the effect of inflation on the guarantee.”