Pension freedoms give people a wide range of options. This is undoubtedly a good thing for clients, but with freedom comes responsibility. Clients will need to manage their money to ensure that they have enough to live comfortably for the rest of their lives, to cover any emergencies, and to pass down to future generations if desired. They may therefore need to make important decisions at various points throughout their retirement. The options are complex, and will require careful consideration and planning.

This is why many more people than ever before will need financial advice. Communicating the pension freedom changes to clients can be challenging, and explaining the value of the advice you can give has never been more critical. Using a tax policy framework, withdrawal policy framework and investment policy framework, which together make up your centralised retirement proposition (CRP), can help you communicate the value of your advice – all the way throughout the process.

Our video explains what the pension freedoms could mean for your client

Benefits for advisers

  • Differentiate your business from your competitors, allowing you to select the clients you want to work with, offering propositions that suit both your business and your clients.
  • Ensure the sustainability of your business by building long lasting, profitable relationships for both you and your clients
  • Reduce time and cost spent on administration by improving the efficiency of processes
  • Reduce time and cost spent reassuring clients by setting their expectations
  • Reduce business risk by building repeatable processes that potentially deliver consistent client outcomes

Benefits for your clients

  • Give them an appreciation of the complexity and risks associated with drawing income from investments in retirement: helping them to value your services and see they cannot do this on their own
  • Setting realistic expectations will:
    • Minimise any unpleasant surprises for your clients
    • Allow you to aim to help them meet their key goals
  • Value your advice by understanding both the complexity of their own situation, and how your processes and practices help manage risks