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IFAs face struggle to meet money guidance demand

The Government’s proposed money guidance service could put a strain on advisers who do not have the time or resources to deal with large numbers of clients needing full advice, warns pension expert Steve Bee.

In an online poll, Scottish Life head of pensions strategy Bee asked advisers how many pension clients they could realistically look after. Of 277 advisers who responded, 39 per cent say they could look after up to 100 clients comfortably but 15 per cent think that 50 is the limit. Thirty per cent say 150 is acceptable but only 16 per cent think their capacity is above 150.

Bee estimates that the UK’s 20,000 qualified pension advisers could look after a total of 2.5 million clients, given an average of 125 clients each.

He says: “It seems likely that few of those ten million people who are not currently saving anything for retirement are today numbered among the clients of IFAs.

“That fact alone should set bells ringing among those putting together the factsheets and flowcharts that are presumably being drawn up following the Thoresen review.

“Financial advice on complex issues such as pensions is a scarce commodity that is probably already stretched as far as it can go.”

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Sam Shaw is a reporter on Money Marketing
Between the RDR interim report, Money Marketing’s retirement summit, Lighthouse and Bates overseas conferences and some other investment conference, we needed to let our hair down a bit this week – just for a change.

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