Advisers expect retirement planning to be the single largest driver of revenue growth over the next year, following a shortfall in asset growth.
Research from Canada Life, published today (August 29), found 58 per cent of advisers expected retirement planning to be the best revenue driver, followed by inheritance and wealth planning (51 per cent) and pensions consolidation (45 per cent).
In a sign things are changing only 15 per cent of advisers foresaw asset value increases propelling business growth in the next year, down from a third (34 per cent) over the past five years.
Canada Life had polled 185 advisers in June this year.
It found that advisers also expected business growth to come from an increased demand for advice, with 44 per cent expecting gains to be made in this area, up by 7 percentage points in the past five years.
Equity release is also increasingly expected to drive business growth, up 6 percentage points to 16 per cent.
Neil Jones, tax and wealth specialist at Canada Life, said: “The increase in demand for advice has propelled this into the higher rank of business drivers.
"It’s now a central part of advisers’ income streams, making up the ‘big four’ advice areas with retirement planning, IHT planning, and pensions consolidation."
But he said overall there were worrying as well as encouraging signs.
"The principle engine for wealth creation over the past 30 years has been the increase in asset prices for things like equities and residential property. Ultimately, that falling is a concern, be it because of Brexit or fears of a trade war.
“What’s encouraging is the way advisers are reacting by looking at other revenue streams."
Rebecca Aldridge, managing director of Balance Wealth Planning, said due to recent coverage of issues around doctors' pension taxes more people were starting to see the value of retirement planning advice and wider advice in general.
Ms Aldridge said: “Investors are becoming increasingly conscious that retirement planning is no longer as simple as putting money into a pension.
“ The recent headlines about how the annual allowance and lifetime allowance has impacted on public sector workers has helped with that awareness.
“More people are seeing the benefit of taking professional planning advice, particularly in the couple of years leading up to their planned retirement date.”
She added: “For a large number of our clients, planning to minimise inheritance tax and maximise their legacy is a core part of their plan and where our advice adds value.
“Most clients see this as a complex area of planning where professional advice can really make a difference, so I’m not surprised to see that Canada Life’s research shows people are expected to take advice in that area over the next year.”
What do you think about the issues raised by this story? Email us on firstname.lastname@example.org to let us know