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More clients, higher profits: advisers positive about future

Despite Brexit and DB transfer worries, the advice profession is confident in being on solid ground over the next two years.

Aegon’s latest report, published this morning, shows advisers are generally positive and confident, despite the uncertain political climate and upcoming regulatory changes.

‘Any concerns that advisers are overwhelmed by the vast array of recent changes in the industry seem unfounded,’ said Steven Cameron, Aegon’s pensions director.

'Aegon Adviser Attitudes Report 2017' contains research conducted by Opinium among 252 UK financial advisers in June 2017.

Take a look at the findings, which include adviser attitudes to a number of issues such as next generation engagement and defined benefit transfers.

Aegon’s latest report, published this morning, shows advisers are generally positive and confident, despite the uncertain political climate and upcoming regulatory changes.

‘Any concerns that advisers are overwhelmed by the vast array of recent changes in the industry seem unfounded,’ said Steven Cameron, Aegon’s pensions director.

'Aegon Adviser Attitudes Report 2017' contains research conducted by Opinium among 252 UK financial advisers in June 2017.

Take a look at the findings, which include adviser attitudes to a number of issues such as next generation engagement and defined benefit transfers.

The biggest opportunities for the advice profession over the next two years

Defined benefit (DB) transfers were advisers’ biggest opportunity, with the clarification of Financial Conduct Authority expectations giving advisers confidence in this area.

Supply has so far not met demand, partly because firms still have memories of pensions mis-selling in the late 80s and early 90s, but more than half of advisers have identified this as an area for growth.

Despite DB opportunities, a different pensions challenge is emerging. In interviews with more than 617 advised customers in May this year, Aegon found more than half of 18-30 year olds have had to reduce monthly savings to help with the increased cost of day-to-day living.

According to the report, advisers are in prime position to address this issue.

The biggest threats for the advice profession over the next two years

Brexit comes out top as the biggest threat for the profession over the next two years, although it is still less than half the vote. While 40% believe it could hurt business, 21% said it could lead to new opportunities.

Uncertainty over Brexit can create opportunities from advisers, who have experienced increases in profits and turnovers over the past 12 months.

Four in five (81%) advisers surveyed have seen an increase in turnover, with the same number expecting an increase over the next 12 months. Three quarters (75%) have increased profits, with 78% expecting to continue to do so.

This is expected to be reflected in an increase of clients and an expansion of the workforce.

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