Are ISA’s in Demand or are Pensions the Preference?
According to research by Canada Life, more clients are seeking advice on annuities, pensions and self-invested personal pensions over ISA’s following the introduction of pension freedom. A survey undertaken with 306 advisers showed that 80% reported that pensions was the most sought after topic of advice within 2015, which was an increase of 69% compared to 2014. For these advisers, ISA’s dropped down from first to second most sought after topic of advice during 2015.
The report also found that two thirds of the 306 surveyed advisers were mostly concerned about future changes to the pension system which was closely followed by the worry of the impact of new rules for pension tax relief.
The report also stated that adviser’s clients had more investible cash during 2015. The average amount of investible assets reportedly rose from £188,556 in 2014 to £191,813 in 2015 (An increase of 1.7%) which comes as no surprise as figures have been steadily growing for a number of years.
Although this survey was only undertaken with 306 advisers, it would be interesting to discover whether this hypothesis was agreed with by advisers nationwide. Furthermore, it will be intriguing to know if this potential trend continues in 2016 or whether the ISA makes a return to the summit of clients most sought after topic of advice.
According to research by Canada Life, more clients are seeking advice on annuities, pensions and self-invested personal pensions over ISA’s following the introduction of pension freedom. A survey undertaken with 306 advisers showed that 80% reported that pensions was the most sought after topic of advice within 2015, which was an increase of 69% compared to 2014. For these advisers, ISA’s dropped down from first to second most sought after topic of advice during 2015.
The report also found that two thirds of the 306 surveyed advisers were mostly concerned about future changes to the pension system which was closely followed by the worry of the impact of new rules for pension tax relief.
The report also stated that adviser’s clients had more investible cash during 2015. The average amount of investible assets reportedly rose from £188,556 in 2014 to £191,813 in 2015 (An increase of 1.7%) which comes as no surprise as figures have been steadily growing for a number of years.
Although this survey was only undertaken with 306 advisers, it would be interesting to discover whether this hypothesis was agreed with by advisers nationwide. Furthermore, it will be intriguing to know if this potential trend continues in 2016 or whether the ISA makes a return to the summit of clients most sought after topic of advice.
Tom Brown