Advisers estimate that couples already make up more than 40% of their client base while wider family groups account for 17%. However advisers expect these figures to rise as a result of pension freedoms – two thirds (68%) expect to advise more couples in the future and nearly half (46%) expect more family groups.
One in three (33%) advisers have already reported an increase in couples and families in their client base over the last 12 months.
The changes to pension rule swill allow many savers to pass on their pension pot to others tax free for the first time. When asked to predict which aspects of financial advice would become more important to families and couples in the light of the new pension freedoms, advisers highlighted inheritance tax planning, tax minimisation and planning for retirement income as the most likely.
Nearly 50% of advisers believe it is good practice to encourage partners and families to seek advice together. Looking to the future, just over half (53%) say joint financial planning will become more important and 39% say they have already developed special services to meet the increasing demand.
Vince Smith-Hughes, retirement income expert at Prudential, said:
“Advisers are telling us that the shape of their client base is changing. Best practice in retirement and legacy planning has always been for couples to make well informed joint decisions. But recent changes mean that for some people it’s now also important to involve their wider families in the planning and decision making process.
“The choices now faced by those who have saved through their working life and the implications of these choices mean that, more than ever, professional financial advice should be a valuable part of retirement planning for most people. The free and impartial guidance available from the Government’s Pension Wise service should also prove extremely valuable to anyone over the age of 50 with defined contribution pension savings.”
Billy Burrows, an independent retirement options expert, said:
"One of the most far reaching changes are the new death benefits which allow pension pots to be transferred to any number of beneficiaries, which means that pension funds can be passed from one generation to another.
“However, with freedom comes responsibility and individuals owe it to themselves and their family to get the best possible help and information before making very important decisions about how best to use their pension pot. With this in mind, it is no surprise to see financial advisers gearing up to be ready to help more couples and families make the right financial decisions together in the future.”
