A large majority (67%) of financial advisers believe their clients will be forced to postpone retirement due to the cost of living crisis, according to research from BNY Mellon Investment Management.

After surveying more than 200 UK retirement-focused advisers, the manager found that 67% of independent financial advisers (IFAs) expect their clients to hold off on their original retirement plans, while 56% expect their clients to reduce pension withdrawals to safeguard their retirement.

The report, Life Beyond Work: The Changing Face of Retirement, revealed that 75% of financial advisers identify the cost of living as a key concern for retirees.

Market uncertainty is also a challenge, with 66% of advisers saying this is a key worry for retirement clients.

These concerns were often compounded by changing family dynamics, as 29% of advisers acknowledged that retiree concerns over the cost of supporting family are rising, with the need for financial support for children and parents increasing.

These concerns are also set to impact financial advisers’ businesses. Fifty-one per cent say meeting their meeting their client expectations will be their biggest business challenge over the next few years, while 44% anticipate clients moving money away from investments into cash savings.

The impact of changing regulation, however, is viewed as the largest threat to IFA businesses over the foreseeable future.

The research suggests some advisers are uncertain about the long-term impact of the FCA Consumer Duty and what — if any — changes need to be made to their retirement advice approach, with 61 per cent of retirement advisers identifying red tape as an issue.

Advisers are already anticipating a need to further tailor their approach to retirement clients’ specific needs, and regulation, along with shifting economic and market conditions, will prompt advisers to reassess the products and portfolios they use for retirement income clients.

Over half (54%) of advisers, for example, expect to make greater use of cashflow planning over the next three years. Twenty-three per cent of those surveyed believe they need to make changes to their retirement income investment strategy as a result of regulatory changes.

And 61% of this cohort cited regulatory expectations that advisers use a different set of portfolios for clients in decumulation, from those they use for clients still accumulating wealth, as an extra burden.

Advisers were also considering more fundamental changes to their business models, such as introducing a wider range of services. Forty-four per cent expect greater involvement in long-term care planning and 42% see an increased role around providing housing advice.

Commenting on the survey’s findings, BNY Mellon Investment Management head of retirement, Richard Parkin, says the higher cost of living, coupled with poor market performance, means clients need their advisers to help them get more from less.

“While we expect these challenges will continue driving demand for retirement advice, advisers are having to help clients reassess what retirement means for them and build realistic plans to achieve this,” he said.

“Part of this will be ensuring clients are invested appropriately to support these plans and while markets remain challenging in the near term, advisers can ensure clients are invested in the longer-term opportunity.

“One thing that won’t change is the importance of the adviser relationship. Amidst all this uncertainty, the opportunity for advisers to serve as trusted guides and to help their clients navigate these challenges will only grow. We recognise the significant value of effective retirement planning and will continue to play our part in helping advisers and other intermediaries develop their approaches,” he added.

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