There is a growing disparity between the risk attitudes advisers believe clients need to take to grow their money and those of clients, according to the results of a recent YouGov poll commissioned by AXA Life Invest.
A poll of 204 UK-based IFAs discovered that almost half of advisers, or 44%, believed clients could be neglecting investment opportunities based on their desire to maintain a cash position.
Despite clients appearing "skittish", 60% of advisers still chose not to advise their clients to protect existing assets but rather encouraged clients to consider taking on more risk.
Alliance Bernstein pensions strategies managing director Tim Banks said investors should be prepared for a rise in interest rate and a gradual increase in the yield curve, measured over several years.
He said: "People who are ten to fifteen years from retirement may think that they should put their money in risk-free assets, but actually they need to make that money work harder for them to get a decent income in retirement.
"We see it as absolutely essential to invest your money in a range of assets including equities and bonds in the years leading up to your retirement to ensure you continue to grow your pot sufficiently."
Axa Life Invest managing director Simon Smallcombe said: "Advisers are waking up to the fact that many of their clients have a cautious attitude to risk and want to protect their assets as well as grow them.
"Given your retirement savings pot is the largest and most important asset you will own, it makes sense to protect and insure it, just as you would a car or a home. A unit-linked guarantee allows you to do just that. It provides a guaranteed minimum income in retirement that you will not outlive."
Since November 2008
Share issue oversubscribed
PARTNER INSIGHT: For many advisers, outsourcing to a multi-manager or discretionary fund manager makes sense, allowing them to focus on the adviser-client relationship
Events, information and other services
An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client