Platforum's Advice in Decumulation Research

Advisers favour multi-asset, multi-manager and equity funds for retirees but 60% continue to recommend annuities.

Go to the profile of Miranda Seath
Jun 21, 2016
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Advisers favour multi-asset, multi-manager and equity funds for retirees but 60% continue to recommend annuities.

New research from Platforum, the retail investments research and consulting firm, reveals that financial advisers are most likely to recommend multi-asset, multi-manager and equity funds to retirees since the pension freedoms.

8 in 10 financial advisers surveyed in June said they had recommended multi-asset, multi-manager or equity funds to clients in decumulation since the introduction of the pension freedoms.

Despite the headlines announcing the death of the annuity in 2014, 60% of financial advisers continue to recommend annuities.

When we spoke to advisers, they told us that when they describe the characteristics of an annuity without using the term ‘annuity’ the client’s response is often positive. The guarantees that annuities provide are still valued but the term annuity still turns off some advisers.

The research shows that 43% of financial advisers are recommending annuity plus drawdown to clients. The approach here is to use an annuity to generate the client’s fixed expenditure (mortgage/rent, household bills, etc.) and to use drawdown for discretionary expenditure.

Go to the profile of Miranda Seath

Miranda Seath

Senior Researcher, Platforum

Miranda Seath is a Senior Researcher at Platforum where her focus is on trends in financial advice and how changes in the makeup of the financial advice market are affecting both retail investment distribution and workplace savings. Miranda has extensive experience of conducting qualitative research into retail financial services distribution. Prior to joining Platforum, she was Head of Marketing Communications Services at Marketforce Business Media helping clients to develop content and thought leadership on strategic issues in financial services. Miranda read Ancient and Modern History at St Hilda’s College, Oxford and has an MA with Distinction in International Studies and Diplomacy from the School of Oriental and African Studies.

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