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Baby boomers dominate advice demand

Retirees and pre-retirees now account for four out of every five dollars under financial advice, which is “just the tip of the iceberg”, according to research from Investment Trends.

The Investment Trends 2013 Retirement Planner Report found that baby boomers have become the pre-eminent market for financial planners, accounting for 82 per cent of planner funds under advice and 66 per cent of financial planning clients.

With the Australian Bureau of Statistics predicting the numbers of retirees and pre-retirees will grow from 6.2 million to 7.9 million over the next 10 years, the report stated that the demographic's “economic importance will continue to increase”.

“In 2013, for the first time, retirees held half of all planner funds under advice, up from 46 per cent just 12 months earlier,” said Investment Trends' senior analyst Recep Peker in a statement.

“And that’s just the tip of the iceberg. With the first wave of baby boomers only just reaching retirement age, retirees and pre-retirees will continue to demand higher levels of planning support for decades to come.”

The report also found that BT Wrap and CFS FirstChoice are the most popular platforms for both retiree and pre-retiree markets, with a total market share of 15 per cent each, reflecting their dominance across all age groups.

However, North and Asgard Infinity eWRAP have a larger number of pre-retiree and retiree clients when compared to market share.


“Planners are very demanding when it comes to selecting a platform for their retiree and pre-retiree clients,” said Mr Peker.

“As well as low fees, strong support services and high-quality reporting, they are increasingly looking for well-developed transition to retirement capabilities and a wider range of investment options — especially income-guaranteed products.

“We’re also seeing planners taking a more hands-on approach to client education, preferring online calculators and scenario tools to static educational collateral,” he added.