During a series of pensions workshops, 71% of IFAs said regular reviews and communication with the client is the best way to minimise the erosion of retirement savings for a client at retirement, given the impact of inflation and falling interest rates and volatile investment markets.
IFAs believe this regular communication is essential in order to assess the portfolio and make timely adjustments throughout the lifetime of the pension, which highlights the importance of looking at investments over the long term, not just during the current economic downturn.
An additional 31% of IFAs felt that strategic asset allocation still plays an important role. During this time of economic downturn there are funds that can provide safety, diversification, and non correlation of asset classes. It is essential to look at time in the market, as opposed to timing the market.
Mike Morrison, head of pensions development, AXA Winterthur Wealth Management, said: "Ongoing communication with clients can ensure that their portfolios are constantly kept up to date and that they respond to the economic conditions of the day, as well as keeping one eye on the future. Over the past year or so, this probably means communicating with clients on a more regular basis as markets and priorities change. Regular communication and portfolio review also provides IFAs with an ongoing service that they can be paid for, particularly with the RDR (Retail Distribution Review) on the horizon.
"In the current climate clients need more reassurance and advice than ever before; this is an ideal time for advisers to rebuild consumer confidence."
