Advisers are overwhelmingly positive about next April’s pension flexibilities, but are less certain about the impact the government’s guidance guarantee will have on their business, according Axa Life Invest research.
YouGov undertook an online survey of 204 financial advisers at the start of December, in response to which 45 per cent of advisers stated they have already told their clients they should take advantage of the new options available to them.
However, advisers are less positive about whether the flagship ‘guidance’ sessions will direct people towards professional financial advice, with 29 per cent admitting they were unsure how it will impact their business and only 3 per cent expecting new business growth from referrals.
This is despite rules published last month by the Financial Conduct Authority compelling providers of the sessions, which include The Pensions Advisory Service and the Citizens Advice Bureau, to refer consumers to further information, including ‘specialist’ and ‘regulated’ advice where relevant.
In fact, advisers questioned for the Axa survey indicated that the single greatest challenge in 2015 will be proving the ‘value’ of financial advice, which was cited by 53 per cent of respondents.
Second with 51 per cent is making sense of the new landscape for clients, but further advice obstacles featured prominently thereafter with 40 per cent highlighting the challenge of proving advice is not ‘expensive’, and 34 per cent concerned over differentiating advice from guidance.
The poll also found that 86 per cent of advisers believe the reforms will lead to product innovation, while 76 per cent feel well prepared to cope with these new products.
Some 58 per cent plan to recommend to their clients a blended or mixed approach from April combining more than one retirement solution, while 21 per cent said they plan to recommend drawdown more to their clients.
Simon Smallcombe, UK managing director at Axa Life Invest, said: “This means the old days of a one size fits all solution are well and truly over for both advisers and their clients.
“New approaches, focused on combining different retirement solutions to best suit client’s individual needs, can only result in better outcomes in retirement.”
Elsewhere, the impact of depressed growth in the eurozone on their clients’ assets was the biggest concern for next year (59 per cent), followed by a new government (55 per cent), the end of quantitative easing (38 per cent), the possible breakup of the EU (26 per cent) and the pensions reforms coming into effect (20 per cent).
peter.walker@ft.com
