The belief advisers need newly created products to help clients meet their financial needs in later life is misguided as existing solutions just need to be used more effectively.
That was the view of a panel at Money Marketing Interactive today who say more products could complicate rather than simplify life for advisers.
Hybrid solutions that combine flexible and guaranteed income such as deferred annuities are difficult to understand.
Hymans Robertson research director Stephen Birch says: “Deferred annuities are really complex products for advisers and clients. There are enough products as it is and so new products won’t take us [clients and advisers] forward.
“Where there is scope for some improvement is in driving down costs and I am personally a fan of passive investment solutions.”
Magenta Financial Planning chief executive Julie Lord agrees and adds: “The insistence we have to create new products from government is a bit of a red herring. Many people have enough assets and solutions already and our job as advisers is to help them in a tax efficient way. Why do we need further products?”
EQ Investors executive director Jeannie Boyle says there is still a role for annuities as security is the most important element for many clients in retirement and does not need an adviser.
LEBC director of public policy Kay Ingram adds: “It is up to us as advisers to make advice more affordable before clients access pensions. Annuities do have place in this market but advisers do not explore them enough.”