Demand for retirement advice has increased amid the cost of living crisis, with advisers estimating that over half (58%) of the assets they advise on are for clients receiving retirement advice, up from 55% in 2021, research from Aegon has revealed.

The survey also found that this trend is expected to continue, with this figure expected to reach 62% over the course of the next three years.

The increased demand was primarily attributed to recent market uncertainty and volatility, as 57% of advisers suggested that the current economic environment has prompted an increased demand for retirement advice.

Indeed, the research found that advised clients’ views are in line with this, as 75% said that the economic situation of the past year has led them to consider changing their level of risk, the income they take or review how much and/or when they pass on money.

Changes to the funding of social care were also a key factor, with 42% of advisers expecting this to prompt increased demand for retirement advice according to advisers.

This was followed by pension dashboards (28%), affordability of retirement advice (27%) and changes to workplace pension retirement options (26%).

Commenting on the findings, Aegon chief distribution officer, Ronnie Taylor, stated: “After a tumultuous time over the past year, with volatility in the markets and regulatory change, retirement advice has remained a vital element of the financial advice industry.

“It’s positive to see that sentiment amongst advisers around the retirement advice part of their businesses has lifted too.

“The research shows that the cost of living crisis plays a huge part in client demand for retirement advice, which is perhaps not too surprising considering volatile markets, rising interest rates and high inflation will naturally impact financial plans.

“With many advised clients admitting they plan on reviewing how they manage their money, the findings highlight the value of getting professional advice.

“This can offer invaluable support in making good financial decisions in volatile times and in planning for retirement. With the new Consumer Duty on its way, the research also indicates key opportunities for advisers to add value and deliver good outcomes for their clients into the future.”

Adding to this NextWealth managing director, Heather Hopkins, stated: “Since starting this research in 2018, we’ve seen a number of significant events that have impacted the demand for retirement advice.

“Each of those events, whether economic, political, regulatory or health related, were very different in nature but all demonstrate the importance of good quality financial advice when times are uncertain. The resilience and adaptability of those providing this advice has never been more in focus as we move through 2023.”


This article first appeared on our sister title, Pensions Age.

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