New financial adviser guide explains impact of retirement reforms on advice process and adviser businesses
17 March 2015
Defaqto, an independent researcher of financial products, has launched a guide on retirement planning for financial advisers.It coversthe impact of the retirement reforms on the advice process and adviser businessespost April 2015.
The FCA states that consumers lose outbecause of their own attitudes towards pensions,
retirement and financial services in general,specifically:
- Their lack of engagement in pensions andannuities
- The confusing trade-offs they face
- Behavioural biases that make it difficult for themto make the right choices
Additionally, the increasing requirement to blend a range of solutions to deliver the retirement income that clients want means that advisers should consider the impact of this in their businesses. However, even though advisers are exceptionally well-placed to help their clients navigate this new world and help them with pensions, investments as well as estate, elder care and tax planning, there are regulatory and compliance issues which should not be ignored.
The FCA anticipates that more complexproducts are likely to become available to allow
consumers to take advantage of the greaterflexibility on offer, and a number of industry commentators expect potential problems emerging in the retirement market as consumers take advantage of the new freedoms.
Gill Cardy, Insight Consultant(Wealth), says:
“Understanding regulatory thinking and consumer behaviour iscritical in developing best practice for the newretirement landscape from the outset.
“All industry participants, whether advisers orproviders, investment managers or marketers,have a vested interest in developing theright approach to the newretirement advicelandscape, be it at the product level where accurate and timely information will be vital to the due diligence process or at the advice level where blended solutions will become commonplace.”
Download this guide to retirement planning
