Some 20 per cent of people who use a financial adviser are “very concerned” about the prospect of them retiring.
Research by Investec Wealth & Investment revealed there is a genuine concern amongst consumers that their adviser will retire.
The study, comprising 535 UK consumers, found that 61 per cent would retain the same firm and use another professional in the company if their adviser retired.
While 31 per cent said they would find another adviser for themselves and 8 per cent said they would stop using an adviser altogether.
According to Investec W&I, 21 per cent of respondents believed their financial planner would retire within the next two years with 41 per cent thinking it will happen within the next five years.
The research also found men are more pessimistic about losing their adviser than women with 52 per cent of men either “very” or “quite” concerned their adviser will retire compared to a quarter of women.
Nick Vaill, senior investment director at Investec W&I, 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 administrative burdens and costs which may put off potential acquirers.”
Previous research by Investec W&I, which surveyed 100 advisers, found that 49 per cent said that they had plans to retire within the next five years.
While 35 per cent of respondents said they planned to retire by the time they turned 50.
alina.khan@ft.com
