Retirement advisers warn of 'significant stock market downturn'

The MetLife research shows almost one in three (31%) of advisers plan to contact clients about protecting pension savings, rising to 44% of advisers with clients who are planning to retire within five years.

A major motivation is growing fears about a stock market downturn – with six out of 10 advisers (58%) saying they are concerned about a significant correction this year which increases risks for savers about to retire.

The FTSE-100 has surged by more than 6% since the Referendum result after an initial slump and is now at a one-year high with the Bank of England rate cut and £170 billion stimulus package boosting markets and potentially returns for retirement savers who can lock-in gains.
 
MetLife’s research found advisers have already seen a surge in inquiries about retirement planning since the Referendum – 17% say they have been contacted by clients asking for retirement planning reviews while 15% have been asked about guaranteeing funds.

Simon Massey, Wealth Management Director at MetLife UK, said: “The predictions of doom and disaster after the Referendum vote have so far been proved wrong with the initial shock turning to a market surge, a so-called ‘Brexit bounce’.
 
"But, those clients nearing retirement are faced with decisions that ultimately will impact the rest of their retired lives. There’s never been a more appropriate opportunity for advisers to consider solutions that offer guarantees and the potential to lock-in current gains.
 
"Clearly there is real nervousness out there with advisers concerned about potential downturns and braced for market volatility ahead with most expecting a significant correction this year as the picture becomes clearer
 
"Clients still want and need to invest but many are re-adjusting their attitude to risk. They are focused on guaranteeing and capturing gains while they can, while accepting that uncertainty is here to stay for the foreseeable future."