Vanguard survey highlights UK pension opportunities

More than 90% of UK financial advisers view the UK pension freedom changes as their single biggest business development opportunity, according to a survey conducted by Vanguard during their Investment Symposium polling 74 advisers.

The survey also found 94% of advisers cite helping clients achieve their life-time goals as the most important aspect within the client and adviser relationship.

While two in three UK financial advisers (68%) state that clients come to them specifically to address retirement income planning.

Regulation emerged as the main challenge for UK advisers in 2016, getting 31% of responses. Client acquisition and retention got 18% of responses, followed by managing client expectations at 16%.

Below a list of other worries for UK advisers:

  • Defining your value proposition to clients 15%
  • Increasing fiduciary responsibilities 9%
  • Market volatility 7%
  • Keeping up to date with new Products 3%
  • Keeping up to date with education 1%

Neil Cowell concludes, “Our survey shows that financial advisers face great challenges ahead, but also tremendous opportunities. Vanguard is a strong believer in the value of advice and financial advisers, and we have been helping advisers to tell their story for many years.

“Most recently, we’ve published research that seeks to quantify the difference between the returns an investor might achieve with an adviser’s help and the return that they might have achieved if left to their own devices.

“This difference, which we call Adviser’s Alpha, is roughly 3% per annum over the long term and comprises seven different components, including asset allocation, behavioural coaching and other relationship-oriented services. These elements create real value for clients.”


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