Pensions 2015 – the challenge for advisers is that we do this right
Lee Robertson, chief executive officer, Investment Quorum, identifies three areas for advisers attention in 2015: UK pension reform, D2C websites and professional indemnity insurance
Undoubtedly the biggest change in 2015 is the UK pension reforms, which will reinvigorate opportunities for pension holders. By the same token there is a challenge there to ensure that we do this right – we simply cannot afford to get this wrong. Keeping on top of changing rules and regulations can be a daunting prospect but in order to survive, advisers need to be technically competent.
The rule changes will likely lead to increased interest in other areas such as inheritance planning and could well lead to revival of the family SIPP. The scheme previously gained some traction, but I think it will become a much bigger talking point. Pensions are a key area of financial planning and there is so much we can do around this investment.
Of course, we must be cognisant of the rise of direct-to-consumer websites as the awareness and need for financial planning grows. While there will always be a place for face-to-face advice, we have to accept that we may not always have 100 per cent of our client’s attention. Those firms that produce good, engaging content are the ones that will do well going forward.
The bigger challenge we face as an industry is the lack of professional indemnity insurance. We are seeing less and less companies offer it, and in turn it is becoming more expensive, but it is something we as an industry require. The other hurdle we must be mindful of in 2015 is encouraging people to join our profession. There appears to be a lack of knowledge about our industry and this is something that has to change going forwards.