The challenging economic environment is leading to profound changes in client retirement decisions, according to a new adviser survey.

Over half of advisers told NextWealth and Aegon that some or the majority of retirement clients had made changes over the past 12 months due to the economic climate.

Two in three (68%) of clients were staying in work longer and/or deferring accessing retirement savings.

A similar number (61%) were withdrawing more from their overall savings.

Over half (59%) of clients had reviewed the amount or timing of passing wealth to the next generation.

Half (53%) wanted to decrease their level of investment risk, while 36% of advisers saw clients increasing their investment risk.

Around half (53%) of advisers said they had clients looking to guarantee some income through a combination of an annuity and drawdown.

Steven Cameron, pensions director at Aegon UK, said the number of advisers having different clients reacting in very different ways emphasised the value of individual advice.

He said: “The challenging economic conditions of late have impacted most people, including those approaching or in retirement. This research shows just how widespread behavioural changes are, which in turn shows just how valuable retirement advice is, especially in times of change.

“Overall, the research paints a picture of many clients changing their behaviour around retirement, but in a wide variety of ways. This shows the important role advisers play in tailoring their advice to individual needs and preferences, particularly among those approaching or in retirement.”

The report from NextWealth and Aegon comes at a time when the income needed to secure retirement has soared.

The income a couple needs in retirement to sustain a 'Moderate' lifestyle has leapt by £9,100 in the last year - up nearly 30%, according to new Retirement Living Standards estimates from the Pensions and Lifetime Savings Association (PLSA).

A single person would need 34% more retirement income now to maintain the same 'Moderate' lifestyle as last year, equivalent to £8,000 more.

The amounts have climbed partly because of inflation but also because people’s priorities have changed following the pandemic, the PLSA said.

The report said people were placing increasing importance on spending time with family and friends out of the home, which brings its own extra costs.

NextWealth surveyed 200 financial advisers on behalf of Aegon UK in November 2023.

• Financial Planning Today Analysis: This survey backs up other recent similar surveys suggesting that many advised clients have made significant changes to their retirement plans, particularly how they invest and how they plan to phase the handing on of wealth to younger generations. One of the most interesting findings was that more than half of clients wanted to reduce investment risk while more than a third wanted more risk. There may be a split emerging here between clients who need to reduce risk to maintain the value of their pension pot as much as they can and those who are confident markets will rise and plan to stay invested for longer, perhaps planning to stay invested for much longer. As ever, one size of advice does not fit all and understanding how clients' views have changed since the pandemic is key. In many ways it was inevitable clients would be profoundly affected by Covid and then the economic problems caused by inflation and other factors but this is a story still to unravel further.