Retirement experts are warning of an “advice vacuum” as savers delay making decisions on their pensions until the new options created by the Budget become available in April 2015.
The warning is included in ‘The Retirement Advice Survival Guide’, a paper giving information on the changes to the pensions system, risks, and the new opportunities the reforms present for advisers.
Retirement Intelligence director Bill Burrows, who wrote the report, says: “The new pension rules will open up possibilities for people, and advisers are clearly awake to this. However, it’s important that advisers continue to counsel their clients ahead of the new flexibilities being introduced in April 2015.
“In some cases it may not be good advice to defer taking income, especially when there is a specific income requirement. Even when a case to defer taking benefits exists there are still a number of advice opportunities. For example, ensuring there is an appropriate investment strategy. Clients must be informed of the risks, such as the potential for lower annuity rates or stock market volatility.”
MGM Advantage director of distribution and sales Aston Goodey says: “There appears to be an advice vacuum at the moment, as advisers and their clients defer retirement income decisions until next year. This paper will help advisers to start engaging with their clients, and better understand the key issues in relation to new retirement options.”