Retirees will have more choice as to how they structure their income in retirement and eight in ten (83%) advisers believe there will be an increase in client demand for products that have a guaranteed element.
This echoes previous LV= research which revealed that since the Budget, three quarters (72%) of advisers had clients who had already requested a product that offers them a guaranteed income and future flexibility.
One of the most noteworthy changes announced in the Budget is the option for retirees to withdraw their entire pension pot from April 2015. Whilst there has been much debate over whether this change will lead to retirees blowing their pension savings, the research reveals that over half (54%) of advisers believe that clients will be far more conservative than has been suggested.
Although the pension reforms took the industry by surprise, the majority of advisers are feeling positive about the Budget’s impact. Indeed nine out of ten (92%) advisers believe that the changes will lead to more people engaging with the pension industry, with eight in ten advisers expecting it to encourage more pension saving.
Commenting, Steve Lewis, LV= head of distribution for retirement solutions at LV=, said: “Although retirees will be looking for more income flexibility many will, of course, want income certainty and a solution that offers a guaranteed element.
“We expect the pension reforms to lead to drawdown and equity release becoming mainstream solutions so it is reassuring to see that advisers are looking into getting additional certifications to reflect the expected increase in demand for these products.”
