A poll by Lincoln Financial Group shows 50 per cent of financial advisers want to see more innovative solutions launched into the retirement income market.
The research also claims that financial advisers with national firms are the most convinced of the need for innovation with 64 per cent saying increased innovation is needed to improve their business.
But Lincoln says advisers’ awareness of new products already launched in the retirement income market is limited. Around 19 per cent of advisers are unaware of any innovations and only 12 per cent were aware of innovations in SIPPs.
Awareness of other innovations such as drawdown products, wraps and changes to traditional annuities was in single figures, according to Lincoln.
Lincoln Retirement Income head of product and marketing Simon O’Connor says: “The retirement income market represents a huge opportunity for advisers as the increase in sales of pension products following A-Day in 2006 shows. The ABI reported a 45 per cent rise in individual pensions regular new premium business in 2006.
“However the industry needs to build on that success and offer more solutions which take advantage of the opportunities offered by A-Day and meet the demand from consumers. Products should focus on the pre-retirement, at-retirement and in-retirement markets.
“There has been innovation in the market over the past year but it is clear the industry needs to do more to communicate with advisers and help them to understand the products that are already available.”