A new study from Investec Wealth & Investment (UK) reveals significant concerns among UK investors regarding the impending retirement of their financial advisers.
According to the research, one in five investors (20%) are “very concerned” about their adviser’s retirement, while an additional 26% are “quite concerned.”
The study surveyed 535 UK investors with stock market-related investments. It found that 61% of clients plan to stay with the same firm and choose another adviser within the company if their current adviser retires.
In contrast, 31% said they would seek a new adviser independently and 8% indicated they might stop using a financial adviser altogether.
The apprehension surrounding adviser retirement is compounded by the belief among 21% of respondents that their adviser will retire within the next two years, with 41% expecting it to happen within the next five years.
This concern is supported by additional research conducted by Investec, which surveyed 100 financial advisers and planners.
Nearly half (49%) of these professionals have plans to retire within the next five years and 35% aim to retire by 50.
Gender differences also emerged in the study, with 52% of men expressing significant concern over their adviser’s potential retirement, compared to only 25% of women.
Nick Vaill, senior investment director at Investec Wealth & Investment (UK), said: “It is entirely understandable that clients often find themselves worrying about what will happen to their financial investments and affairs when their adviser retires.
“They are concerned about losing the personal attention and expertise they have come to rely on, and are worried that any change in personnel could disrupt the continuity of their investment strategies that have been put in place.
“However, retirement is part of the natural course of life, and most financial advisory organisations will have succession plans in place to ensure the smooth transition of a client’s financial assets to another qualified professional.
“We have seen the importance of advisers implementing a centralised investment proposition and working in conjunction with a discretionary fund manager to better facilitate the sale of a business or hand over to a new adviser. Advisory models do come with additional administrate burdens and costs, which may put off potential acquirers.”
Investec Wealth & Investment (UK), a major player in the wealth management sector, manages over £40bn in assets across 14 regional offices.
Is this really surprising? How many want to throw in the towel because the burden of regulation is now so gross that they believe there is more to life than satisfying an overweening regulator.