6 in 10 retirement specialists recommend ISAs

Six out of 10 (59%) have changed their recommendations on ISAs as part of retirement planning since new pension rules increased flexibility and limits to the lifetime allowance.

However clients remain concerned about the impact of stock market volatility on ISA investments with advisers saying around 24% are worried that a stock market crash in the run-up to retirement will erode savings.

The increased interest in using ISAs for retirement planning is driving adviser interest in guaranteed ISA solutions – more than 70% would like a capital guarantee on ISAs which lock-in gains, while 73% would support ISAs offering a tax-free guaranteed income for life.

Simon Massey, Wealth Management Director, MetLife UK, said:

“The £20 billion increase in ISA investments in the last tax year highlights how advisers are right to recognise their importance in retirement planning, which will only grow once the new lifetime allowance comes into effect.

“But the risks of ISA investment in stocks and shares are being demonstrated by the ongoing stock market volatility with the FTSE suffering along with all global markets, there needs to be solutions which can help combine certainty with flexibility.

“Risk proofing retirement remains one of the biggest challenges following the launch of pension freedoms and guaranteed solutions have a major role to play in meeting growing demand.”