Bringing you live news and features since 2006 

UK clients putting pressure on financial advisers


Advisers are becoming increasingly concerned about making retirement income recommendations they are uncomfortable with since the launch of pension freedoms, according to research from MetLife.

Its study found 22 per cent of advisers were not comfortable with customers choosing not to follow their recommendations since pension freedoms increased flexibility over pension funds.
The worries about insistent clients are reflected in the study of advisers’ concerns in relation to the ongoing impact of pension freedoms – around 87 per cent of those questioned said they were worried that increased flexibility over pension funds was leading to savers making mistakes.
Concern about clients running out of money came second only to concerns about consumers facing unnecessary tax bills – around 93 per cent of advisers want more clarity on tax rules.
MetLife research among retirement savers show there are grounds for concern – around 11 per cent of those questioned said they planned to take all their pension savings as cash while 12 per cent were considering turning final-salary scheme savings into cash.
Simon Massey, wealth management director at MetLife UK, says: “Advisers make recommendations and it is ultimately up to clients to decide what they want to do.
“It is still worrying that so many advisers have had cases since the launch of pension freedoms where they were uncomfortable with the recommendations they made.
“It highlights the desperate need for more innovation in retirement income solutions that can deliver the combination of certainty and flexibility that is so important following the launch of pension freedoms. Guarantees have a major role to play in delivering that.”
MetLife’s Retirement Portfolio is specifically designed for pension freedoms, providing a choice of income and capital guarantees and its range of guaranteed retirement and savings solutions addresses the need for a guaranteed level of income for life in retirement and protection of capital against volatility.
The flexible guaranteed drawdown solution offers the potential for daily lock-ins of investment gains while enabling savers to start, stop and restart their income to suit their personal needs. Customers can choose from a range of investments to build a personalised retirement plan suited to the level of risk they are willing to take, while having the choice of a valuable guaranteed level of income for life or a guaranteed capital sum at retirement.  
MetLife’s guaranteed stocks and shares ISA offers a choice of income or capital guarantees, with savers who invest in the Secure Income Option able to take a guaranteed level of income for life from age 55, while customers who use the Secure Capital Option have the certainty of a guaranteed amount at the end of their chosen term.

Latest News

HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..
VanEck has reached USD10 billion in assets under management in Europe for the first time in April 2024...
Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according to a benchmark study published..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by