Over a third (36%) of advisers have already seen younger customers seeking advice, and 21% anticipate a drop in the age of clients.
The spot poll of Avelo Exchange users found that just one in ten (9%) have seen an increase in the age of clients seeking retirement advice. Nearly a quarter (23%) of advisers have not seen nor expect to see the demographics of those seeking retirement advice change.
As a consequence, 58% of intermediaries have either changed their processes or plan to do so to cater for the change in demand for retirement advice. Almost a third (29%) of advisers have already altered their approach, while 29% have plans in the pipeline.
The change seen by advisers in the age of clients has been mirrored by a change in demand for types of products. More than a third (34%) of those surveyed have seen an increased demand for drawdown products. 16% have seen more demand for flexible or variable annuities, while demand for fixed rate annuities has increased by 11%.
These findings match up with recent research from the National Association of Pension Funds which found that younger individuals are more likely than many older workers to be planning to increase their retirement saving over the next year.
Paul Yates, Strategy and Product Development Director, Avelo said:
“In today’s climate it is important for advisers to think about their target segmentation when offering retirement advice. The age of consumers seeking this type of service is changing as consumers realise they have to provide for themselves. Advisers need to be ready to cater for the potential shift in demographic and the tools and services required to engage with younger clients. This is also imperative given so many advisers have already seen an increase in demand for certain products, such as flexible or variable annuities as well as drawdown products."
