Nearly three quarters of financial advisers believe more product innovation is needed in decumulation, according to an exclusive survey by Bankhall with Money Marketing, but complexity continues to be a barrier to advice on hybrid products.
In the survey of 252 IFAs for Money Marketing, Bankhall asked advisers what the main barrier to recommending more hybrid products in decumulation is.
Thirty four per cent said that it was complexity, 20 per cent said there are better ways to meet the same client needs, 18 per cent cited a lack of products, and 13 per cent said there was a lack of client demand.
When asked if they expect more providers to launch hybrid products in the next 12 months, 47 per cent said yes, 39 per cent were unsure and 14 per cent said no.
She adds: “Advisers want a solution that enables them to service their clients year-in and year-out, without the worry of clients running out of funds.
“Part of that is around portfolio design and fund innovation, particularly in the wake of the decline of traditional with profits funds
“Yet, despite this, what we have seen in recent years is providers offering hybrid retirement products dropping out of the market, with one of the latest being Aegon in March.”