UK advisers under pressure from headstrong pensions clients

Financial advisers in the UK say the number of clients that ignore retirement income guidance in the wake of ‘pension freedoms’ is a concern. Metlife, an insurance firm, found 22% of advisers had clients who opted not to follow adviser recommendations since the introduction of pension freedoms in April last year. The pension freedoms increased people’s flexibility over their pension funds, allowing those over 55 years old to withdraw their entire pension as a lump sum, rather than being obligated to purchase an annuity.  The study also found around 87% of respondents said they were worried that increased flexibility over pension funds was leading savers to make mistakes. Concern about clients running out of money came second only to concerns about consumers facing unexpectedly high tax bills as a result of drawdown. Around 93% of advisers want more clarity on pension taxation. MetLife’s study of retirement savers suggests these concerns are not without foundation, as 11% of respondents said they planned to take all their pension savings as cash, while 12% were considering turning final-salary scheme savings into cash. ©2016 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.