The UK-headquartered company has cited a 4% increase in the proportion of investors regarding pensions as an important factor in their investments, from 52% in 2013 to 56% in 2014.
However, just 56% regard savings as important, demonstrating a shift in clients’ attitudes and priorities towards their investments, with tax planning and protection both falling as priorities.
Propositions and marketing director for distribution at Canada Life, Nick Harding, said: “The further we move out of the shadow of the recession the more the focus has moved towards longer term retirement and pension planning.
“We expect retirement planning to remain a key topic of conversation for both advisers and investors over the coming months, especially once the changes made are fully introduced.”
Concerning
However, he added that it is “concerning” that both tax planning and protection have decreased as priorities for clients: “While it is indeed important that clients have a forward thinking and long-term approach to looking after their finances, the need to safeguard assets in the here and now should not be forgotten.
“We therefore urge people to also carefully consider their current level of protection and the tax implications, and be sure to take action wherever necessary.”
The company added that, on average, the amount of investible assets per client has ballooned by £6,000 (3.9%), totalling £159,348 for each individual investor. It said this coincides with the fact that one in five financial advisers have observed greater affluence amongst their clients’ profile.
But, despite a 5% decline, capital growth has continued to keep its place at the top spot for investor priorities, standing at 65% for 2014.
Meanwhile, pensions, annuities, ISAs and collectives have been cited as the products most in demand, with an increasing number of investors using proceeds from the sale of properties for investments.
Reform
Under the reforms, which were announced in this year's Budget and will come into force on 6 April 2015, someone reaching the age of 55 will be able to take their entire pension pot at once, with 25% tax free and the rest taxed at the retiree's marginal rate (subject to the person's lifetime allowance).
Additionally, UK death taxes, currently set at 55% and often cited as key reason to use a QROPS, are to be reduced.
Furthermore, the Government proposed the introduction of restrictions on transferring from defined benefit pension schemes, with a suggestion these will only be permitted in exceptional circumstances. If this were the case, clients may be prevented from transferring into a QROPS when migrating abroad if, say, they had worked in the public sector.
