Retirement Advice in the UK: Time for Change?
Revisiting retirement strategies amid changing regulation, markets and client needs.
NextWealth and BNY Mellon have partnered to launch a update to our retirement advice report – Retirement Advice in the UK: Time for Change?
The report will be the seventh edition to our retirement advice research series, previous named Managing Lifetime Wealth report, which charts the continued rise in demand for retirement advice as well as the growing complexity of delivering advice for clients decumulating wealth.
This report defines the current practices and approaches to managing lifetime wealth for clients, allowing financial advice professionals to benchmark their approaches against their peers.
Key findings
- Clients have a variety of objectives
- 35% of advisers say that most client say they are looking to pass on wealth
- 19% say most clients are taking ad hoc lump sums
- Demand for retirement avice is expect to rise
- 63% of advisers see tax changes as a driver of increased demand for advice
- 54% say the current market and economic environment is also driving an increase in demand
- Investment approaches are changing
- 51% of adviser recommend a total return approach to support income withdrwals
- 34% always or often use income portfolios to support payments
- Budget changes will affect retirement advice
- 72% of advisers will delay accessing pensions to mitigate inheritance tax
- 44% say all or most of their clients will be affected by the CGT changes
Methodology
The report findings are based on quantitative and qualitative fieldwork conducted over the following periods:
- An online survey of 208 financial advisers run from the 9th to the 21st of September 2024.
- An online survey of 254 consumers of retirement advice (aged 55+ with a minimum of £100k of investable assets) run 9th to 21st September 2024.
- In-depth qualitative interviews with ten financial advice professionals conducted in two tranches; five interviews in October 2024 ahead of the Autumn Budget, five following (November 2024).
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