When questioned about earnings generated from pensions and retirement related advice, almost one in three IFAs (31%) believes both upfront and ongoing earnings will be affected in a negative way. Indeed, only 6% of IFAs were optimistic that the RDR will have a positive effect on their earnings.
The research shows further evidence of the concern in the market surrounding the effects that RDR is expected to have on the IFA industry.
When asked to consider how advisers anticipated structuring their annuity advice, the findings also painted a picture of change. Almost half (46%) of advisers anticipate segmenting their client base. For these advisers, they will look to segment their customers, creating a streamlined process for OMO clients and a bespoke process for those with larger investment funds.
Additionally, one in six (16%) IFAs anticipated increased usage of flexible retirement solutions, as they seek to develop more innovative solutions for their clients at-retirement needs.
Mark Stopard, head of marketing at Sun Life Financial of Canada, said: "Our research highlights the continuing anxiety IFAs feel over the effect that the RDR will have on their revenue streams.
"It is encouraging that the majority of advisers are already clear on their options for retirement advice. They are taking the sophisticated approach of segmenting their customer base, whilst a growing number are looking to consider flexible retirement solutions to those customers who require a more innovative and inflation proof approach to managing their retirement income."
