Nearly two-thirds of advisers have witnessed an increase in business enquiries since the Budget announcement, according to a survey conducted by Skandia.
The firm’s latest Adviser Insight survey, conducted in June 2014 among 963 financial advisers from across the UK, found that 64% of advisers had received an increased level of enquiries, either from existing clients or new prospects.
The majority of new enquiries are related to planning for later life, with almost 71% of those enquiries concerning either pension saving, retirement income or IHT/legacy issues.
Plans for radical changes to the way pension savers can access their money in retirement were revealed by the chancellor in March. Key to the planned changes is the proposal that consumers in defined contribution pensions schemes will be able to withdraw as much, or as little from their pension savings whenever they wish after age 55.
The plans were initially greeted with widespread concern that retirees would take the opportunity to access their entire savings and buy a sportscar, however Skandia’s own data revealed in April that less than 10% of its current flexible drawdown customers have taken, or are currently in the process of taking, the entire value of their pension savings.
This latest Adviser Insight survey further emphasises this view with over 78% of respondents suggesting that their clients will look to access their pension savings in instalments decided by them.
Adrian Walker, retirement planning manager at Skandia, said: “It is encouraging to see that advisers are receiving more enquiries following the Budget, showing that the public is becoming re-engaged with the whole process of saving for their retirement.
“The chancellor’s bombshell in March put the pensions industry on the front pages with talk of complete freedom and flexibility. However the reality is still rather complex and the public is still likely to require some guiding through the changes.
“The Government’s plan for impartial guidance will go some way to cater for this need but these figures show that full financial advice is highly valued and that in order to make the most of the opportunities the proposed changes provide, consumers are willing to seek a qualified professional.“
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