eValue says that risk-rated Centralised Investment Propositions (CIPs) will fail to be "fit for purpose" as a "decumulation" alternative to annuites.
, A survey of 4,500 advisers carried out for eValue reveals that 97% currently use Centralised Investment Propositions (CIPs) as risk-rated solutions for wealth accumulation.
However, eValue's survey found that post RDR only 3% of advisers were producing bespoke investment solutions for clients while the rest were using CIPs.
New pension freedoms from 2015 will dramatically expose this as a failing in relation to post income retirement planning, according to eValue.
Widespread adoption of Centralised Investment Propositions (CIPs) is being used by advisers as investment solutions for their clients, according to eValue's recent survey of 4,500 advisers which took place 2 April – 2 May 2014.
This practice has grown dramatically as a result of RDR and the FSA's 2011 Guidance on risk assessment and investment suitability.
The purpose of the research was to understand the approach taken by adviser firms when selecting suitable investments for their clients. The resulting insights highlight the concentration on CIPs - with 97% of participants using risk-rated CIPs which could be either model portfolios, risk rated funds or target risk funds.
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"However", warned Bruce Moss, Strategy Director at eValue, "while CIPs can be a very good investment option, they are a "one size fits all" solution which do not cater for the wide range of consumer investment objectives".
The new pension freedoms created from 2015 by the Budget will dramatically expose this "failing", said eValue. Sustainability of income will be the objective of many retirees and this will depend largely on the income to be drawn relative to the size of the pension pot.
Mr Moss said: "The risk-free option will be to buy an annuity and the risk rating of CIP is almost irrelevant as a relative risk benchmark.
"A high level of income drawn from a low risk CIP is, in fact, high risk as capital is eroded leaving clients exposed to lower income levels based on reduced capital. 
"Risk-rated CIPs are not fit for purpose for post-retirement income planning. Unless the industry's approach changes within the next 11 months, advice on the new options created by the Budget could result in considerable consumer detriment".
"Post Budget, the industry needs to raise its game by adopting a more suitable approach for the 'at and post-retirement' markets in order to achieve better outcomes for all.