Are advice firms prepared for the potential increase in vulnerable customers?
5. More women will look to get advice
Drawdown may trigger an increase in demand for advice among women.
According to Zurich’s study, women in drawdown were less likely than men to have any hands-on experience of investing – 41 per cent versus 29 per cent. On top of this, women reported having smaller pots, which they typically need to stretch out for longer.
Men had an average drawdown pot of £212,000, which at a 3 per cent yield secures an annual income of £6,360. Women had an average pot of £132,000, equating to an income of just £3,990.
This means women have £2,370 less per year and would need to find riskier investments yielding 5 per cent to match the retirement income of their male counterparts. Advice is likely to be key to helping women maximise their income in retirement, and firms that can engage effectively with women stand to benefit from this.
A growing population in drawdown presents new opportunities for advice firms.
But adapting to the changing needs of consumers is vital if firms are to maintain a competitive edge.
Alistair Wilson is head of retail platform strategy at Zurich UK
