Pension freedoms 'will boost advice opportunities'

Its study shows 53% of firms expect annual profits to rise as a result of the new pension rules with advisers expecting profits to increase by an average of 13% due to a rise in demand for advice.

Part of the increased demand for advice will be driven by the launch of Pension Wise and the Guidance Guarantee, with 44% of advisers questioned believing it will increase enquiries to adviser firms.

However the research also showed that advisers have concerns that they could face increased regulatory and compliance issues as a result of the pension freedoms, particularly on the basis of advice given before the new rules were fully clarified.

Around 45% of advisers express such concerns. While around 25% say they have already taken action to head off potential problems, 20% have not taken action despite their concerns.

Additionally, 35% of advisers believe the launch of pension freedoms will help close the pension gap in the UK – but 55% believe it will have no impact.

Paul Harrison, Head of Business Consultancy at Prudential, said:

“The introduction of pensions freedoms is clearly being seen by advisers as an opportunity. The importance of expert financial advice on retirement options will be reinforced and advisers are embracing the changes.

“The majority expect to see their profits rise as a result and are also anticipating an increase in enquiries as a result of the launch of Pension Wise.

“There are challenges which the adviser profession is rising to, and it is important that providers support advisers in meeting these challenges.”