Clients in the dark over pension reforms but advisers on track

AdvisorAdvisory firms are prepared for the upcoming UK pension reforms, although their clients aren’t nearly as ready, according to a report.

Research by FundsNetwork, which polled over 200 advisory firms, found that 94% were prepared for the introduction of pension freedoms on April 6. Only 3% said that their firm wasn't prepared at all.

Nearly nine out of ten respondents said they had a good understanding of the new pensions regime, with a quarter of those describing their knowledge as “very good”.

This is in stark contrast to the firms’ clients, whose knowledge of the imminent changes to the pensions rules is lacking. Of the firms surveyed, only 4% said that their clients had a good understanding of the changes. Around half thought that their clients had some understanding while 43% believed that their clients understanding of the new law is “poor”.

“With just a few days to go until the reforms come into effect, it’s encouraging to see that so many advisory firms are geared up for the changes and feel confident about advising clients on the options that will be open to them. However, whilst advisory firms may have good understanding and are generally well prepared, it looks as if their clients are not,” says Jon Everill, head of advisory services at FundsNetwork.

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