Annuity advice market set to boom
With high inflation, record low interest rates and annuity rates combined with the fact that people are living longer, Primetime Retirement thinks this trend is set to continue – the research showed that four in five (79%) IFAs expect to see an increase in the number of clients asking for advice about annuity purchase in the next 12 months.
Primetime Retirement marketing director Stuart Wilson said: “People are living longer with increased emphasis being put on retirement as a significant part of someone’s life.
“Advisers have a genuine opportunity to add real value to their retirement business at a time when clients approaching or at the point of retirement are changing their views on what retirement means.”
The Primetime Retirement research showed that the main concern for clients when asking for advice about retirement income was not having enough income cited by four in five (81%) IFAs.
Nearly two thirds (64%) highlighted death benefits and ensuring their client’s spouse/partner is financially secure as the main concern.
And more than two in five (44%) IFAs suggested their clients are primarily concerned about retaining flexibility over retirement income.
Wilson added: “Currently there is a serious reality gap between the incomes people believe they will have in retirement and the incomes they actually achieve.
“Retirement income solutions have to adapt to the new reality and current solutions will not be suitable for all. Those who are in good health and still working want to keep their options open in retirement and need retirement income solutions which are flexible enough to adapt.”
The Primetime Retirement Plan is a deposit-based investment which offers advisers and clients a combination of a fixed income for six years which is not affected by age or gender; and a Protected Maturity Amount at the end of the six-year term which they can use to purchase another appropriate pension product.
It also offers Value Protection Plus death benefit, a valuable lump sum benefit for those looking to pass on as much of their fund as possible should they die prematurely.
For those clients looking to boost the potential purchasing power of their maturity fund, Primetime Retirement also offers a variety of investment upside alternatives to their core plan, using a Structured Deposit that links an additional maturity lump sum to the performance of the FTSE 100 Share Index.
Clients can choose among the Accumulation+ plan aimed at those who are still saving for retirement; the Capital+ Plan for those seeking income and potentially higher growth; and Income+ for those looking for higher income.
The first issue of the Retirement Plan opened on March 12th and its 5th issue closes on August 24th.