Pensions Freedom will boost advice opportunities
23 March 2015
- Two out of five advisers believe Pension Wise will drive enquiries
- But Prudential research shows concerns over compliance risks
The launch of pension freedoms in April will boost advice opportunities with more than half of firms expecting to benefit from the new rules, according to new research from Prudential1.
Its study shows 53 per cent of firms expect annual profits to rise as a result of the new pension rules with advisers expecting profits to increase by an average of 13 per cent due to a rise in demand for advice.
Part of the increased demand for advice will be driven by the launch of Pension Wise and the Guidance Guarantee with 44 per cent of advisers questioned believing it will increase enquiries to adviser firms, the research shows.
The research also showed that advisers have concerns that they could retrospectively face increased regulatory and compliance issues as a result of the introduction of pension freedoms particularly on the basis of advice given before the new rules were fully clarified.
Around 45 per cent of advisers express such concerns. While around 25 per cent say they have already taken action to head off potential problems, 20 per cent have not taken action despite their concerns.
Paul Harrison, Head of Business Consultancy at Prudential, said: “The introduction of pensions freedoms is clearly being seen by advisers as an opportunity. The importance of expert financial advice on retirement options will be reinforced and advisers are embracing the changes.
“The majority expect to see their profits rise as a result and are also anticipating an increase in enquiries as a result of the launch of Pension Wise.
“There are challenges which the adviser profession is rising to, and it is important that providers support advisers in meeting these challenges.”
The Prudential research shows 35 per cent of advisers believe the launch of pension freedoms will help close the pension gap in the UK – but 55 per cent believe it will have no impact.
Notes to editors
1 PollRight interviewed 120 IFAs online on behalf of Prudential between 31.12.14 and 9.1.15
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