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Bradshaw alerts IFAs to huge pension transfer market

IFAs should broaden their focus beyond rich clients or risk missing out on a potential 500bn opportunity in the occupational pension transfer market, says industry veteran Paul Bradshaw.

He says around half a trillion pounds of transfer money will move over the next five years and all these people will need advice.

The former chief executive of Abbey’s life and fund business addressed 750 delegates at Bankhall’s annual member conference in Berlin last week, telling them that 30 years ago he identified an opportunity to target people looking to switch from defined-benefit to defined-contribution schemes.

He said the industry is now on the brink of dismantling DB schemes, effectively growing the transfer market massively, and IFAs should consider how to exploit this opportunity.

Bradshaw said an ageing UK population means advisers must switch their efforts from advising on savings to focusing on retirement planning and those who concentrate on rich clients could miss out on a lot of lucrative business.

Bradshaw said: “One certainty is that at least half a trillion pounds will move in the occupational pension market over the next five years. This all has an impact on real people who really need advice. I would urge you to think about that half a trillion. Some very clever City folk have seen this growing demand in the UK. Why haven’t you?”

Bradshaw also told IFAs to consider equity release. He said: “My political friends agree that equity release has to become mainstream to give us baby boomers the long, self-indulgent retirements we so richly deserve. Your rich customers will start to take it easier, poorer clients will want to discuss equity release. They will all want a long, prosperous retirement.”

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