Adviser Barometer shows impact of pension reforms

It's been nine months since last year's pension reforms took effect and research from Aviva's latest Adviser Barometer* shows the resilience of the financial adviser market within the constantly-evolving pensions landscape. Nearly three in four advisers (72%) say the pension reforms have had a positive impact, while more than two thirds say the reforms remain the biggest opportunity in the adviser market going forwards.

As well as new opportunities, there were new challenges. For example, many advisers have changed how they do business in response to the freedoms. 44% say they have changed or reviewed the tools that they use because of the reforms, while a further 14% plan to. But 1 in 5 advisers haven’t reviewed, or don’t plan to review, their due diligence processes.

Tim Orton, CEO Aviva Platform, says "It's notable that a number of firms haven't reviewed their due diligence since pension freedoms were introduced and I suggest that they consider taking action as the changes to potential customer groups and requirements have been significant."

For advisers reviewing due diligence on our platform, our toolkit can help make the process smoother.

Broadly, the research shows that the adviser market has responded positively and flexibly in a relatively short timescale. What’s more, it’s been good for business: 26% of adviser firms had an average annual turnover of more than £1m, a significant increase from 16% of firms in May 2015. Similarly, the proportion of firms that had a turnover of less than £250k fell to 38%, down from 56% last May.

Moving forward, a third of advisers consider auto-enrolment to be one of the biggest opportunities for them in the next 12 months, up from a fifth last May. With further pension changes expected in the 2016 Budget on 16 March, there could be more to energise the adviser market in the near future.

*Research conducted by Aviva between 4 – 16 November 2015, 1865 adviser responses received via online survey from advisers registered with Aviva for Advisers.