Retirement is the leading reason clients seek out professional advice. However, IFAs could do more to tap into the large pool of unadvised wealth. They should highlight the benefits of retirement planning and the strategic edge advisors can bring.
When it comes to personal finance, retirement is one of the biggest transitions an individual will ever face. As such, it is unsurprising that retirement is by far the leading driver for UK consumers to seek professional advice according to our 2015 IFA Survey.
And they do need advice: according to Scottish Widows research only 56% of UK consumers are currently saving enough for retirement. Women in particular are not saving enough; they tend to have much less in savings than men and thus are less prepared for retirement. This gap widens when savers reach their 30s, as choosing to start a family can have a strong impact on a woman’s ability to save. The savings gap continues later in life – on average male workplace savers put aside much more than females.
The number of individuals who are not on track to receive their desired pension shows there is a significant opportunity for IFAs. According to our 2015 Retail Banking Insight Survey, the leading reason consumers turn to a financial planner is the belief they will provide a better investment strategy and thus higher returns. Stressing this competitive edge will help IFAs attract new clients and capture the vast pool of unadvised wealth.