Advisers believe the retirement income market needs product innovation to increase new business levels, research from Lincoln Financial suggests.
A survey shows 50% of advisers want to see more innovation in the retirement income market.
Almost 20% of IFAs do not know of any innovations and just 12% know of innovations in SIPPs.
Almost 10% of IFAs want to see innovation in drawdown products, while 5% each would like to see innovation in traditional annuities and wraps.
IFAs at national firms show the strongest desire for innovation. Almost 65% say they need increased innovation to improve their business, compared with 50% across the market as a whole.
Simon O’Connor head of product and marketing at Lincoln Retirement Income, says: “The retirement income market represents a huge opportunity for advisers as the increase in sales of pension products following A-Day in 2006 shows.
"The ABI reported a 45% rise in individual pensions regular new premium business in 2006.
“However the industry needs to build on that success and offer more solutions which take advantage of the opportunities offered by A-Day and meet the demand from consumers.
"Products should focus on the pre-retirement, at-retirement and in-retirement markets.”
Last month Lincoln Financial said switching from initial commission to renewal commission is 26% of IFAs’ biggest priority to generate income over the next year.
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