Research by MetLife reveals that 42 per cent of advisers cite rising longevity as the major concern when recommending investment strat- egies for pension clients. Infl-ation is seen as the biggest threat by 27 per cent of advisers while 18 per cent point to stockmarket volatility.
Eleven per cent believe that the ability to protect savings in retirement is the biggest concern.
Strategic development and marketing director Dominic Grinstead says: “It is striking that advisers cite longevity as the biggest threat ahead of volatility and inflation, despite the recent focus on the rise in the cost of living and the slump in the FTSE.
“This demonstrates that advisers are focusing on the long term and that they believe clients should also be looking long term. Increasing longevity means the long term is likely to be longer than many people expect and that existing retirement income solutions may not always be up to the task.”
Equity Partners IFA Kevin Tooze says he believes stockmarket volatility is the big-gest threat to retirement savings in the current climate. He says: “If your pension pot is reduced in one year by 30 per cent due to a stockmarket crash, that is an immediate threat for clients about to retire. I would say longevity is the least of clients’ worries, particularly now.”