View more on these topics

Longevity seen as biggest factor in planning

Advisers believe that increasing longevity is the biggest concern when recommending retirement strategies, ahead of stockmarket volatility and rising inflation.

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.”

Recommended

NHFA helps set up website on care

Specialist elderly care IFA NHFA has launched a website with Help the Aged and other organisations to help educate people about elderly care.

The King- size crunch

Bank of England governor Mervyn King’s heavy-handed rejection of proposals to help the mortgage market floated by Sir James Crosby shows there is little consensus on what needs to be done in the homeloan sector.

India budget: BJP focuses on growth

By Kunal Desai, Head of Indian Equities

With markets kept open on Saturday, finance minister Arun Jaitley delivered a promising budget focused on growth and decentralisation. While many complained about a six-day working week, there was much to be pleased about and the markets rallied in the afternoon to finish in the green.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment