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A third of IFAs planning to recommend third-way products

More than a third of IFAs plan to advise clients to use products with guarantee, or so-called “third-way” products, as an alternative to traditional annuities, research by MetLife Europe has found.

The survey shows that 38 per cent of IFAs say they will advise clients to use guarantees in their pension planning over the next year.

The study also found that 48 per cent of advisers expect to sell more guaranteed pension products over the next five years as the retirement income market changes.

MetLife’s findings reveal that half of respondents believe too many pension investors are using conventional annuities rather than drawdown products, variable annuities or unit-linked guarantees.

A separate report commissioned by MetLife from Ernst & Young predicts that there will be “big opportunities for providers and advisers” in providing mainstream solutions to meet the needs of a new generation of retired people.

MetLife strategic development and marketing director Dominic Grinstead, says: “The retirement income market is changing and advisers are increasingly looking to products which reflect these changes.

“Advisers are reporting increasing interest from clients in guarantee-type products and are recommending them more often as they recognise that changed circumstances require changes in products.”

He adds: “Unit-linked guarantees fulfil an important part in the product suite that IFAs can offer clients planning for retirement. Guarantee products provide an excellent solution by giving exposure to equities and offering the safety net that investors are increasingly looking for.”


Easy come, easy go

Volatility and periods of pronounced weakness have marked European equity markets following four years of strong gains. Banks were initially at the epicentre of these market moves but concerns about the economic outlook have begun to affect the wider market. We think that the root causes of this volatility – a higher risk premium and softer growth – are here to stay for the foreseeable future.

Welcome to The Brunner Investment Trust PLC

Welcome to the latest update for The Brunner Investment Trust PLC from the trust’s portfolio manager Lucy Macdonald. Market Review Global equities ratcheted higher throughout February, buoyed by optimism about global growth and corporate earnings. All regions advanced, although Japan tended to lag many other markets. In sector terms, healthcare, information technology, consumer staples and […]


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