Tuesday, 17 June 2014 11:12
IFP: Many advisers lack key skill for retirement planning
Many advisers lack crucial cash flow forecasting skills required to provide the advice needed by retirees to guide them through the complexities of the new pensions system, the IFP has said.
As the Government examines how it will implement its pledge to provide free, impartial, pension advice, following its radical reforms, a survey of experts concluded there were not enough advisers capable of providing this accurately enough.
Sue Whitbread, IFP communications director, said: "I would agree that finding enough advisers with the required Financial Planning skills is going to be a challenge to satisfy what is likely to be very strong demand for the services."
{desktop}{/desktop}{mobile}{/mobile}
With specific reference to the Government's plans for the provision of face-to-face guidance, 69% of annuity providers and pension experts surveyed by Equiniti said there were not enough advisers capable of providing this advice accurately.
Only 13% of respondents to the pension administrator's poll felt that there were sufficient resources available.
Ms Whitbread said: "For us it goes way beyond having good technical knowledge and a background in retirement planning.
"Central to it is for advisers to have the planning skills to help people to make effective decisions about the income they will need in retirement– and that's all about the need for good cash flow forecasting skills.
"We know that this is a competence that many advisers lack."
Ms Whitbread encouraged advisers who have not yet got to grips cash flow forecasting to do so - to handle enquiries from the new guidance regime - but also to improve the value of the service they can provide for all of their clients.
She said: "It's something which is at the heart of all 67 IFP Accredited Financial Planning firms and CFP professionals too have proven that they have the relevant skill set.
"This provides the all important context for the decisions that need to be taken especially at retirement."
As the Government examines how it will implement its pledge to provide free, impartial, pension advice, following its radical reforms, a survey of experts concluded there were not enough advisers capable of providing this accurately enough.
Sue Whitbread, IFP communications director, said: "I would agree that finding enough advisers with the required Financial Planning skills is going to be a challenge to satisfy what is likely to be very strong demand for the services."
{desktop}{/desktop}{mobile}{/mobile}
With specific reference to the Government's plans for the provision of face-to-face guidance, 69% of annuity providers and pension experts surveyed by Equiniti said there were not enough advisers capable of providing this advice accurately.
Only 13% of respondents to the pension administrator's poll felt that there were sufficient resources available.
Ms Whitbread said: "For us it goes way beyond having good technical knowledge and a background in retirement planning.
"Central to it is for advisers to have the planning skills to help people to make effective decisions about the income they will need in retirement– and that's all about the need for good cash flow forecasting skills.
"We know that this is a competence that many advisers lack."
Ms Whitbread encouraged advisers who have not yet got to grips cash flow forecasting to do so - to handle enquiries from the new guidance regime - but also to improve the value of the service they can provide for all of their clients.
She said: "It's something which is at the heart of all 67 IFP Accredited Financial Planning firms and CFP professionals too have proven that they have the relevant skill set.
"This provides the all important context for the decisions that need to be taken especially at retirement."
This page is available to subscribers. Click here to sign in or get access.