"The research shows advisers are already updating their tools and assumption to deal with greater uncertainty and changes in spending behaviours.”
Aegon carried out the research with Next Wealth, at the end of 2021. It canvassed views from 212 financial advisers and supplemented this with in-depth interviews.
- When advising on income drawdown, half of advisers (51 per cent) use modelling tools, an increase from 38 per cent the previous year.
- There has been a further decline in use of the fixed rate method, with a quarter (26 per cent) of advisers using this method, down from 37 per cent the previous year and 66 per cent in 2018
- Where a fixed rate is being used, the research shows an increase in the rates typically used, following a fall during the first year of the pandemic.
- Ease of use is the main consideration when selecting retirement planning tools (27 per cent), followed by reporting capability and client functionality.
As reported in 2021 by FTAdviser, official data from HM Revenue & Customs has shown those taking flexible withdrawals from their pension exercised restraint during the early stages of the pandemic.
However, the increase in the fixed rates used suggests some clients are looking to draw down a higher income as Britain emerges from the pandemic. This could also reflect the need for retirement incomes to keep pace with rising prices, Aegon warned.
simoney.kyriakou@ft.com
