Around half of advisers reckon tax-related issues are now among the biggest factors shaping their approach, following announced IHT changes and ahead of their implementation in April.
Some 47% of advisers cited tax complexity, IHT, estate planning and intergenerational wealth transfer as factors having the greatest influence on approach to retirement advice.
A slightly less 46% pointed directly to changes to the inheritance tax status of pensions. Clients living longer and concerns about money lasting throughout retirement are also high on the agenda, cited by 42% of advisers.
The findings have been published by AKG, part of Defaqto, in a report produced in collaboration with Fidelity Adviser Solutions and Standard Life.
The research reveals that formal Centralised Retirement Proposition (CRP) adoption is limited. Just 16% of advisers report having a formal, distinct CRP in operation. However, 26% report having a consistent centralised approach to retirement advice not described as CRP.
Just 5% said they are currently developing a CRP with the view to launch it in the next year, while a further 1% are developing one, but plan to launch it beyond that time frame, and 7% are considering developing a CRP.
Nearly a fifth (18%) of advisers report that they provide retirement advice on an individual, case-by-case basis, and nearly a quarter (23%) are not considering developing a CRP.
Matt Ward, communications director at AKG, said: “Next year’s changes are forcing advisers to broaden their considerations and planning with clients beyond the more normal, and still crucial, retirement planning factors like longevity and running out of money.
“Hence CRPs and retirement planning frameworks – whether advisers formally identify as using one or not – are having to quickly adjust and become more focused on intergenerational planning as well.”
• AKG carried out two market research exercises with financial advisers. Adviser research (quantitative) was facilitated by Opinium during July and targeted 200 adviser respondents. Adviser research (qualitative) was conducted by Simon Willougby of Acuity Corporate Consulting with 17 interviews conducted between late-June and late-July.