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Advisers pinpoint growth segments post-freedoms

Growth-Emerging-Currency-Money-700x450.jpgJust over two-thirds of advisers expect most business to come from at-retirement clients with assets ranging from £100,000 to £250,000 this year, according to research from consultants AKG.

The online survey of 100 advisers conducted in March looks at how advisers are dealing with the opportunities and challenges of pension freedoms.

It is one of three studies that form part of a report to be launched next week into the pensions freedoms called Grasping the nettle: Working together to achieve better retirement outcomes.

The findings of an online survey released today asks advisers how they see their business expanding, their main investment concern for clients at or post retirement and how providers can meet adviser needs.

The study finds 48 per cent of advisers think growth will come from clients with pots worth more than £250,000 while 33 per cent say clients transferring from defined benefit schemes before retirement will drive expansion.

Twenty nine per cent believe the single biggest risk to their firms from transfer advice is the client retrospectively challenging their decision and seeking compensation.

The three main planning concerns advisers have about clients are investment volatility at 48 per cent followed by running out of money at 45 per cent and sequencing risk at 41 per cent.

On how providers can help advisers in the retirement market 58 per cent see better services as a key requirement and 54 per cent want a better range of fund solutions.

When it comes to the areas they would most like to see developed 46 per cent chose drawdown products and 31 per cent said guaranteed capital/income solutions.

AKG says the new single financial guidance body expected to launch this winter and pensions dashboard should help plug the advice gap.    

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