Four in 10 advisers are concerned about remaining profitable with regulation and professional indemnity their top spending worries, new research shows.
The Aviva adviser barometer, published today, shows 49 per cent of advisers are concerned about regulatory fees and levies while 41 per cent worry about professional indemnity costs.
The study shows concern over economic uncertainty among advisers has dropped from 31 per cent in March last year to 18 per cent today.
The Budget remains at the centre of industry thinking with 58 per cent believing it has created an opportunity for advisers.
Three out of five advisers have reported an increase in business in the over 55 age bracket while half have also noted an increase in over 65s business.
The data also shows how the retirement market is changing with new flexibilities and new financial planning opportunities available.
Two-thirds of advisers are now recommending a mixture of income drawdown and annuities.
Just 8 per cent of advisers are now recommending a standalone annuity while 15 per cent are recommending drawdown only.
Adviser business models are also changing with more going restricted but 79 per cent still remain as IFAs and 5 per cent offering a mixture.
On platforms, six in 10 advisers say value for money is a key reason for changing provider with just 48 per cent saying cost was a factor.
Aviva intermediary director Andy Beswick says: “Advisers are seeing a significant increase in demand for advice, especially amongst those in the 55 to 65 age group, and the majority of them are recommending a mix of retirement solutions for their clients. Overall advisers are also reporting an increase in the size of their active client base.”