Figures from insurance giant Zurich, reveal that more than half of advisers are not giving advice on the full range of new flexible pension rules, with two-thirds worried about their future liability.
“These findings highlight the need for additional regulatory clarity on the pension freedoms and show why the lack of a long-stop remains a key issue for financial advisers,” said Zurich’s head of retail platform strategy Alistair Wilson.
He said fears around liability have left some advisers reluctant to take on certain clients.
Serious consequences
“As a result, some savers are not able to take full advantage of the pension changes while others could end up taking important decisions on their retirement alone, with potentially serious consequences for those who get it wrong.”
Zurich, alongside the Association of Professional Financial Advisers (APFA), has been rallying support for a campaign in a bid to get a long-stop installed to limit adviser liability.
Changing needs
“A solution must be found to ensure the advice industry can continue to meet the changing needs of consumers,” Wilson said.
The study also revealed a surge in business for advisers since the April reforms, with 91% of businesses reporting a jump in pension-related enquiries.
Wilson said he was surprised to find out that 90% of the pension enquiries came from consumers aged over-55, with just 10% of enquiries from those aged 45-54.
“This suggests people are continuing to leave important decisions on their retirement until the last minute,” he said. “To make more informed decisions on their retirement, savers need to engage early with the new freedoms.”
