Those aged 55 years old and over will face a shortage of professional financial advisers when they reach retirement, according to Standard Life.
Research by Standard Life claims advisers will be servicing, on average, up to a 150 clients each post-RDR but argues this is not enough to meet demand.
According to Financial Conduct Authority figures there are 20,453 advisers. Standard Life says these advisers service 3.8m baby boomers with more than £100,000 in financial wealth, which results in a shortage of 5,000 advisers compared to market demand.
Standard Life head of adviser and investment proposition Eddy Reynolds says: “The focus of comment to date has been on the advice gap following the introduction of RDR, with the concern that many people will be priced out of receiving financial advice.
“But we believe there is also an ‘adviser’ gap to service higher net worths, particularly those among the baby boomer generation approaching retirement. In other words, more people than ever before will be in need of financial advice but there will not be enough advisers available to help them.”
Standard Life research claims there could be a larger gap of 12,674 advisers for those aged 45 and over with more than £100,000 in financial wealth – the number of which is close to 5 million.
Reynolds adds: “The belief that there is a decline in potential demand for the financial adviser market couldn’t be further from the truth.
“There are a significant number of people aged over 45 who are asset rich and the financial adviser marketplace needs to grow in order to match the demand for advice that will inevitably be coming in future years.”