Nearly half of advisers are looking to undertake further retirement income qualifications, according to research by retirement specialist LV=.
The survey, based on 77 intermediaries, revealed advisers want to meet the expected change in retiring clients’ income demands through more qualifications. Of the advisers surveyed, 83 per cent said they believe there will be an increase in client demand for products that have a guaranteed element as retirees will have more choice to how they structure their income in retirement.
The research also showed that the majority of advisers – 54 per cent – do not believe retirees will spend all their savings, instead stating clients will be far more conservative than has been suggested by various media outlets.
The majority of advisers are positive about the future of the pensions industry, nine out of 10 (92 per cent) think the changes will lead to more people engaging with the industry and a further eight out of 10 expect it to encourage more saving.
Tony Larkins, managing director at Cambridgeshire-based Beacon Wealth Management, agrees advisers – like any other professional –should be looking to continue to enhance their knowledge. “If this means more exams then I am in favour of that. Most of our advisers are continuing to take exams and have the goal of becoming chartered. Pensions exams are to be encouraged if the adviser is lacking in knowledge. I do not however feel that the changes in legislation are a need on their own,” he added.
Simon Webster, managing director of Kent advisers Facts and Figures, said that throughout 30 years of being a financial adviser, he has learnt that as soon as you learn one way of doing something, the rules change.
“Every client is different and needs something slightly different so you learn something every time you advise and you always need to know more,” he added.
But he also thinks exam qualification by no means equates to professional competence. He said his answer to advisers is to always put their clients’ interests first and to do specific research prior to implementation to make sure nothing important has been missed.
Mr Webster added that further exams are irrelevant. “They are lobbied for by the training companies that sell exams, by the consumer lobby which is simply naïve and by the regulator because more paper is its answer for everything – and we all know where that got us.”
charlotte.richards@ft.com
