Soon to be retirees turn to advice in rising numbers

Advisers have reported a significant jump in clients seeking advice since the sweeping reforms to pensions were announced in March. The Budget overhaul appears to have sparked a rise in interest from those aged 55 and above.Three out of five advisers (61%) said they have seen an increase in the number of people aged 55+ seeking advice following the Chancellor's announcement on retirement income, according to the Aviva Adviser Barometer survey.Nearly half (46%) have also seen an increase in demand from 65+ age group. {desktop}{/desktop}{mobile}{/mobile} It also found that 69% of all advisers have seen the size of their 'active' client base increase in the last twelve months, a significant move from the 28% in September 2013.The largest proportion (31%) said the main source of new clients has come from new entrants to the market, rather than former clients of other advisers (23%).Andy Beswick, Aviva's intermediary director, retirement solutions, said: "Our latest survey shows a continuation of trends identified in previous surveys."As predicted earlier this year, advisers are seeing a significant increase in demand for advice, especially amongst those in the 55-65 age group, and the majority of them are recommending a mix of retirement solutions for their clients. Overall advisers are also reporting an increase in the size of their active client base." {desktop}{/desktop}{mobile}{/mobile} When asked about the approach they recommended to their clients looking to secure an income for their retirement, two thirds (67%) of advisers said a mix of income drawdown and annuity; with more than a third (37%) saying the solution is weighted mostly towards income drawdown.Only 8% now recommend an annuity as a standalone product, and one in seven (15%) suggest income drawdown only.Nearly a half (49%) of advisers still named regulatory fees and levies as their number one concern, followed closely by professional indemnity costs (43%) and remaining profitable (41%). Concern over economic uncertainty has dropped over the last 18 months, with only one in five (18%) now worried about this, compared to 31% in March 2013.Platform usage has continued to grow year on year, with most advisers (86%) now using two or more platforms compared to 70% in Sept 13. Over half (58%) of them use more than three platforms on a regular basis – showing increasing maturity in the marketOn adviser trends, the analysis showed 79% of advisers offered independent advice, a fall of 4% over the last 12 months, while 16% are now offering restricted advice - up from 13%.Network membership has dropped to 31% from 37%.Advisers' future plans have remained consistent over the last year, with the same number intending to recruit (35%), stay in the market (94%), or to achieve chartered status (QCF Level 6) in the next year (16% compared to 18%). Get FREE daily news summaries direct to your inbox. Sign up on the homepage now. Follow us on Twitter and get frequent news alerts @FPM_online. Or follow Editor Kevin O'Donnell - @FPM_Kevin or staff writer James Nadal - @FPM_James. For the latest Sipp, SSAS and retirement news visit our sister news site www.sippsprofessional.co.uk and on Twitter @SippsPro.

Soon to be retirees turn to advice in rising numbers

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