Guarantees on income and capital are becoming increasingly important to investors in a turbulent market, an IFA study suggests.
Results from the sixth wave of Aegon’s IFA Insights survey reveal almost nine in ten advisers say guaranteed levels of income are important to their clients, with eight in ten saying clients want to protect their investment capital.
Rachel Vahey, head of pensions development at Aegon, says the importance of obtaining a guaranteed income in retirement has come to the fore in recent weeks.
“As stockmarkets continue their rollercoaster ride and the economic outlook remains uncertain, at least in the short term, many people will be seeking security in their financial affairs," she says.
Vahey says guaranteed products, such as annuities and variable annuities, come into their own in current market conditions.
“The security provided by guarantees on income or capital is much more obvious and many people will see them as offering value for money in return for peace of mind."
Populus interviewed 100 Independent Financial Advisers specialising in retirement, long term savings and investment products between 23 June and 2 July 2008.
The results of the IFA Insights survey echo Aegon’s consumer research findings from earlier this year, when 85% of people surveyed chose a guaranteed income for life when asked which options appealed to them in retirement.
Full results from the sixth wave of Aegon’s IFA Insights research will be published in the next few weeks.IFAonline
Industry Voice: Scottish Widows pension expert Robert Cochran and economist Andrew Scott discuss the future of employment and income, in episode three of Scottish Widows' podcast series.
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