The number of Australians entering retirement has presented an enormous opportunity for financial advisers according to an investment specialist.
Speaking during an Allianz Retire+ webinar this week, Tim Dowling said the Baby Boomer generation represents a “tidal wave” of Australians seeking advice as they enter their retirement phase and that for advisers, the opportunity has never been brighter.
"What's fuelling this opportunity is the fact that 7,980 people retired in Australia just last week,” Mr Dowling said.
"This cohort of people over the next 15 years will bring $2 trillion of assets from accumulation to decumulation. Capturing half a per cent equates to $275 million of new client assets every single year."
However, while the retirement opportunity is there, Mr Dowling cautioned advisers on particular risks when building portfolios.
In regard to building a retirement portfolio, an online poll found that 51.1 per cent of advisers are most concerned about fixed income, followed by cash (27.7 per cent) and equities (21.3 per cent).
To combat these threats, Mr Dowling said advisers should look to retirement products that generate higher returns and offer downside protection which guarantee a range of outcomes.
He said the products also need to be able to deliver value in four key areas – protection, growth, access to capital and flexibility.
"It's critical that clients have exposure to growth assets in this environment but in a safeguarded way,” he said.
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