Retirement industry needs reforms, says Aviva



Aviva Believes Retirement Industry Requires Reforms

Aviva Believes Retirement Industry Requires Reforms

The demand for financial advice for pensions has increased as a result of the financial crisis, found a research by Aviva. Nearly 61 percent respondents were more likely to see a financial adviser for retirement planning than they were before the crisis struck.

The survey was conducted on more than 300 pension advisers to compare the perception of clients’ attitudes to pensions now and before the economic turmoil in 2006.

“The financial crisis has focused clients’ minds on their pension savings, increasing awareness of the need to provide for themselves in retirement and the need to protect what they already have”, said Clive Bolton, retirement director at Aviva.

“The turmoil has left many clients feeling anxious about the future and a greater number are now expecting to have to work beyond the standard retirement age. Aviva believes the retirement industry needs reform so it can better serve the needs of tomorrow’s pensioners. We call on the industry to adopt a number of practical measures, such as making annuity comparison easier and making the process more streamlined and informative”, added Mr. Bolton.

The survey found more than 50 percent of savers with pension pots of £125,000 or more were more likely to seek financial advice than they were five years ago.

Advisers also said the concept of retirement is evolving and number of clients intending to work beyond the standard retirement age has increased by 71 percent. Clients are also more aware of international events affecting their future savings, the survey found.

Intermediaries said 40 percent of clients were more conscious about the effect of taxation while 34 percent are worried about inflation.

“I have certainly noticed that more people are opting to go to an adviser when it comes to their pensions. Everyone wants to ensure that they make the most of what they have, and an IFA can help a client spot investment deals that will increase their pension pot”, said Tony Catt, compliance officer for adviser True Potential.

“Also things such as auto-enrolment and National Employment Savings Trust have kept pensions in the public domain and people are now thinking more about how they can provide for their future”, he added.

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