11th September 2014

Prudential: Group sessions could be a first step on advice chain

More than half of the adviser firms questioned in Prudential survey would consider group advice sessions for clients

According to a nationwide survey* of financial advisers by Prudential, advisers view small group sessions as a potential way to provide useful face-to-face retirement advice. Over half (57%) of advisers believe that up to 10 clients could be practically helped through a group advice arrangement.

Vince Smith-Hughes, retirement income expert at Prudential, said: “There can be no like-for-like substitute for individual, tailored advice but the willingness of advisers to facilitate group sessions could be a hugely beneficial first step for some people seeking reliable information at retirement.

“The debate about guidance and advice and how it will be delivered has some way to run yet but it is clear that advisers are willing to address new thinking and new methods which may help a wider range of people.”

The research also found that 45% of advisers believe the combination of the Retail Distribution Review, the introduction of auto-enrolment and the Budget mean the UK is now better positioned to tackle the savings gap and pensions crisis.

Smith-Hughes added: “The savings gap and pensions crisis remain as significant challenges for the country but it is very encouraging to see advisers being positive about helping people take control of their finances and planning for retirement.”

Finally, the study also found that more than 57% of advisers believe the UK as a whole should now be targeting a savings to income ratio of 11% or more. The UK’s current household savings ratio, as measured by the Office for National Statistics in the first quarter of 2014 is 4.9 per cent**.

* Research conducted between June 23^rd and June 27^th online among 103 UK IFAs by Citigate Research

** http://www.ons.gov.uk/ons/datasets-and-tables/data-selector.html?cdid=NRJS&dataset=qna&table-id=J3

Retirement