Only 15% of consumers see investment bonds as important to their retirement planning according to new research from AXA Wealth. This suggests that most investors aren’t making the most of their investment options.
The research, conducted by YouGov1, polled consumers on the part single premium investment bonds currently play or will play in their retirement portfolio. The findings suggest that consumers are largely unaware of the role of investment bonds, with 16% saying they were unsure of the returns for investment bonds so did not or would not include them in their investment mix. A further 25% admitted they did not know what role investment bonds play in their retirement portfolio at all.
But for those consumers looking to access a wide range of funds through a product that offers the flexibility to switch between funds and make withdrawals in a tax efficient manner, not considering investment bonds could mean advisers and their clients are missing a trick.
Ian Colquhoun, director of sales and marketing for Specialist Products, AXA Wealth, said: “To have the best chance of financial independence in retirement it is important to consider early the wide range of assets and savings vehicles available, and what is best suited to your client’s requirements. For some individuals this will mean consolidating wealth from across a variety of assets as they approach retirement to ensure they are making the most of all available tax allowances and investment bonds could be the hidden gem of the investment world which helps them to achieve this.
“We are committed to investing in our investment bond to ensure that advisers and their clients have access to the greatest range of retirement income solutions available. Advisers can split the Investment Bond into independent segments or policies and assign each its own investment objective. Withdrawals from the bond can be on a regular or ad hoc basis and the range of trusts and tax planning options ensures greater levels of investment flexibility.”
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