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77% of advisers have either used or are actively considering using hybrid retirement solutions
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10% of advisers say that hybrid retirement products have become a key part of their toolkit while a third (34%) say they likely to become key
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Advisers say the key benefits of using hybrid solutions include the flexibility and increased client choice
One in ten advisers confirmed retirement accounts had already become a key part of their retirement product toolkit, while 34% said they were likely to become so in the future. A further 38% of advisers said hybrid solutions were one of a number of possible solutions, but that didn’t mean they were core.
Advisers said a key benefit of hybrid solutions included the flexibility and greater client choice offered (52%), while sustainable income and guarantees were important for 25% of advisers. One in ten advisers also said that offering the best of both worlds of drawdown and a guaranteed income was important alongside the tax planning opportunities and better death benefits.
Andrew Tully, pensions technical director at Retirement Advantage, commented: ‘As an industry we have seen little innovation in response to the pension freedoms, but one notable exception is the introduction of the new retirement accounts. These hybrid products, blending annuities and drawdown in one product wrapper, neatly bridge the gap between the two approaches to retirement, providing a cost effective solution for a wide range of clients.
‘We’ve had a really positive response to our award winning Retirement Account2, as advisers have quickly seen the benefits of adopting a flexible approach for clients. In a climate of uncertainty and change, clients are looking for security and certainty. Having one plan that can adapt as client needs and priorities change is a very powerful proposition for advisers.’
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