Advisers call for increased innovation on guarantees

Its study among specialist retirement advisers shows 61% want increased innovation on income guarantees while 59% would like to see more innovation in capital guarantees compared with just 34% who want to see providers lowering charges.

More than 70% of advisers are reporting a rise in calls from clients about retirement planning with around 52% of clients on average asking about alternatives to annuities.

The research shows advisers believe drawdown products will be the overwhelming winners from pensions flexibility with 87% choosing variations on drawdown as the products most likely to succeed when the new regime comes into effect.

Annuities will be biggest losers with 96% of advisers choosing conventional annuities as the most likely to suffer ahead of 50% saying investment-linked annuities will lose out and 49% pointing to with-profits annuities as likely to suffer.

Dominic Grinstead, Managing Director, MetLife UK, said:

“The Government has laid the groundwork for an innovation revolution with its focus on impartial advice and pledge to change tax rules to encourage new thinking.

“Guarantees will play a major role in delivering pension flexibility and guaranteed drawdown will be a major focus of innovation across the market.

“The role of advisers has been massively enhanced by the pension changes and advice has a vital role to play in ensuring savers are aware of all their retirement income options.”