Aegon Adviser Attitudes Report 2021

Advisers unsure about impact of Investment Pathways Investment Pathways launched in February this year, following FCA concerns at the number of unadvised customers making poor retirement decisions following the introduction of Pensions Freedoms. The new legislation requires providers to offer four investment strategies with the aim of making it easier for unadvised customers to select an investment that matches their desired retirement outcome. We asked advisers how they thought Investment Pathways would impact customer outcomes. When asked whether they thought it would result in better customer outcomes, most ( 44% ) were unsure. However, a significant number ( 27% ) believe it will lead to customers making poor decisions. If the new legislation has the effect of deterring people from taking financial advice at retirement, this may well be the case – especially since there are other important considerations (such as how much income to take and what to do if plans change) that Investment Pathways don’t address. However, 19% believe the new legislation will prompt more retirees to seek investment advice. Only 10% believe the new legislation will help unadvised customers choose the right outcome for them. It remains to be seen which of these viewpoints will prove the most prescient. Do you think Investment Pathways will drive better customer outcomes? Yes, it will help unadvised customers choose the right outcome for them Yes, more customers will realise they need to seek advice No, it may lead customers to make poor decisions I don’t know 0 5 10 15 20 25 30 35 40 45 50 10% 19% 27% 44% Aegon adviser attitudes report 2021 51