Bringing you live news and features since 2006 

Advisers predict continued rise in pension freedom enquiries and average portfolio size


The overwhelming majority (80 per cent) of advisers have seen an increase in new business enquiries as a result of the government’s pension freedoms and 68 per cent expect to see the number continuing to grow over the next five years.

That’s according to new research commissioned by Investec Wealth & Investment (IW&I). 
Three quarters (73 per cent) of advisers predict an increase in the average portfolio size held by clients seeking pension freedoms-related advice. 
Of these, a fifth (22 per cent) forecast the average portfolio will grow to more than GBP50,000, a third (34 per cent) to more than GBP100,000 and 7 per cent to in excess of GBP250,000. Just 17 per cent of advisers are expecting a fall in the average portfolio size.
According to the research, a key source of new business resulting from the pension freedoms has been Defined Benefit (DB) to Defined Contribution (DC) transfers with 68 per cent of intermediaries having received enquiries from pension savers seeking guidance on this issue. 
On average, advisers predict they will continue to receive DB to DC transfer enquiries from consumers for a further nine years, generating a substantial long-term new business opportunity.
Mark Stevens, Head of Intermediary Services, Investec Wealth & Investment, says: “Advisers have seen strong levels of demand among pension savers as a result of the pension freedom reforms, many of which have involved guidance around DB to DC transfers.  Our research suggests there is little sign of this new business stream slowing down any time soon. 
“Advisers who have had to turn away numerous enquiries from savers whose pension pots have been too small to service profitably will be the first to agree that it’s not the quantity that matters but the quality. In this regard, the research paints an encouraging picture with the majority of intermediaries predicting that average portfolios will increase in size over the coming years.
“Given the complexities involved in providing retirement planning advice in a volatile and fast changing investment climate, many IFAs have become increasingly reliant on the support of an experienced discretionary investment manager.

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
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...
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