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British retirees show IFA demand

New research in the UK indicates that while financial advice take-up rates among British over-55s is lower overall than other age brackets, retirees are demonstrating a strong preference for independent financial advisers (IFAs) in the new regulatory environment.

A survey conducted by personal finance website All About Money, and reported by the UK Daily Telegraph, found that Britons approaching retirement were the least likely demographic to purchase financial advice services, with the average take-up of advice one in ten, as opposed to one in two across all age groups.

However of those professional advice clients, one in five over-55s used an IFA, compared to only 14 per cent of 18 to 24-year-olds.

The figures indicate an IFA resurgence among this client base, as the UK market deals with the aftermath of the FOFA-like Retail Distribution Review, which banned product commissions and implemented strict definitions for “independent” and “restricted” advice.

For an in-depth look at the UK reforms and implications for Australia, see the upcoming cover feature in the July edition of ifa magazine.