The number of financial advisers adopting Centralised Retirement Propositions (CRPs) is expected to rise significantly from 48% to 71% over the next 12 months, according to new research.

Some three-quarters of advisers questioned said they planned to have a CRP place by 2021.

A CRP is a centrally-agreed template approach to retirement planning that usually includes investment and withdrawal strategies. It may include fact finding and client capacity for risk assessment.

It provides a framework for all retirement planning clients but has been criticised for being too restrictive and ‘sausage’ process-like.

Despite the reservations, the research found that advisers were increasingly seeing CRPs as a robust framework for offering retirement advice rather than a restrictive process.

According to the research among 200 advisers by NextWealth on behalf of Royal London’s platform Ascentric, advisers are coming round to the idea of a CRP.

The most commonly cited reasons for establishing a CRP were:

•  35% said they chose a CRP because they offered benefits to clients

• 24% said they increased business efficiency

• 18% said CRPs helped them meet regulatory requirements

According to the results, almost three-quarters of advisers (73%) are segmenting client banks. Of these firms, the clients’ level of assets was the most popular method.

When asked whether they adopted a different segmentation approach for retired clients, only one third said they did. However, there was evidence that many advisers did differentiate their service for retired clients.

Nearly all the surveyed advisers had experience of managing vulnerable clients.

Jo Kite, head of proposition and marketing at Ascentric, said: “The research found that clients seeking retirement advice make up 60% of advised clients and with demand set to grow even further then CRPs can play an important role in helping firms deliver retirement advice more efficiently and consistently.”

Heather Hopkins, managing director of NextWealth, said: “Our research with Ascentric confirms that a CRP does not equate to an overly restrictive approach to Financial Planning. Instead, a CRP is a framework in which firms offer retirement advice.”