Advisers must change the way they assess customers' retirement requirements, according to research conducted by Vertex Life.
The technology solutions firm says advisers need better planning tools and support services as the advice process has become too complicated.
The research also suggests the industry should redefine the term ‘retirement’ to reflect the changing needs of the growing over-50s population.
It says the advice regime should be developed and product design and tax rules changed to “provide a genuine response to customer needs”.
It says a new breed of products should be developed to meet the needs of today's maturing population, particularly to fill the space between semi-retirement and "asset crystallisation" at age 75 and beyond.
Vertex also says the decision to convert a client’s accumulated assets into a guaranteed annuity has become outdated for most customers as in many cases people have multiple savings pots.
Paul Ayres, head of propositions at Vertex Life, Pensions and Distribution, says: “The ‘retirement’ and annuities market is undergoing considerable change, driven by A-Day and treating customers fairly (TCF) legislation, changing mortality as annuitants live longer and increased competition - introduced by IFAs and the Government more forcefully promoting the open market option (OMO).
“Helping the individual make choices in their maturing years requires a very different set of advice tools than those historically focused on asset accumulation and protection.
"Helping this to be a phased and cyclical set of decision points is also important and a real opportunity for our industry to provide real value.
"But the financial advice process and the financial product offerings need to change and adapt to a fundamentally different set of social and financial needs if this is to happen.
"We believe that both of these are in need of major development and innovation.”
The report also shows 71% believe customers will need to have the freedom to make decisions at different age points through the retirement process, rather than having to commit to regulatory or product-based hurdles, which Vertex says can constrain them.
A total of 88% believe customers’ needs will change more by retirement age than previously and financial planning will inevitably have to become more cyclical through the retirement process rather than as a one-off advisory process.
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