Advisers think investment, saving and creating an income are key consumer challenges - Aegon

New research from Edinburgh-based Aegon UK has revealed the top three challenges facing financial advisers’ clients are understanding all the options available for them to invest their money, how to create a retirement income, and saving for retirement.

According to Aegon’s new ‘Adviser Attitudes Report: a spotlight on advisers’ clients’, seven in ten advisers (70 per cent) see navigating investment options as the biggest challenge for their clients.

The shifting landscape since the pension freedoms has created a wealth of investment options, with the move from Defined Benefit (DB) to Defined Contribution (DC) schemes continuing at pace. The findings also reveal that more than half (54 per cent) of advisers anticipate greater demand for investment advice over the coming year, with one in ten (10 per cent) expecting a significant spike.

Looking at the challenges facing clients, six in ten (60 per cent) advisers see creating a retirement income as the second most common issue, with a similar number (58 per cent) identifying the ability to save for retirement.

The increased freedom and responsibility for securing retirement income has created a growing demand for advice, with the number of retirees opting for income drawdown having more than trebled since the introduction of pension freedoms.

According to the Adviser Attitudes Report findings, advisers estimate that, of their clients who have retired recently, more than half (56 per cent) were happy to have their retirement savings fully exposed to the stock market via drawdown. Fewer than one in five (18 per cent) were prepared to give up control of their savings in favour of a guaranteed income solution such as an annuity.

The average client:

Steven Cameron, Pensions Director at Aegon said: “The unrelenting pace of change in the retirement landscape is making it more difficult for consumers as they look to make the big decisions which will affect their financial futures. And in the wider investment world, there’s a huge number of new investment and savings options on offer for those at all stages of life.

“This is where advisers add real value. Whether it be protecting wealth, generating growth, or securing an income in retirement, the specialist knowledge and insight offered by advisers means that they are well placed to help clients through this challenging investment environment.”