F&C Asset Management : Over half of UK financial advisers delay post-retirement advice ahead of pension changes

For immediate release

PRESS RELEASE Over half of UK financial advisers delay post-retirement advice ahead of pension changes LONDON, 3 March 2015 - Nearly six in every 10 financial advisers are delaying post-retirement advice to their clients ahead of pension changes, due to be implemented in April 2015.

F&C Investments surveyed over 250 UK financial advisers at a series of roadshows across the UK on retirement advice they are offering their clients, their confidence in the outlook for the UK adviser market, and the main factors they consider when selecting an outsourced investment solution for clients.

Findings from the survey included:

 Over half (51%) of advisers believed the majority (over 60%) of their clients who would have purchased an annuity on retirement will now defer.

 For clients considering pension drawdown after April 2015, 90% of advisers predict the majority of their clients will drawdown in instalments.

 Over two thirds of advisers (64%) would consider using a multi-asset income fund to produce income in retirement for their clients.

 Despite a number of changes ahead in pension legislation and constraints on advisers'

businesses, an overwhelming majority (91%) remain confident in their business. Similarly, the survey revealed a note of optimism from advisers, regarding their general outlook for
their industry, with four in five (82%) of respondents rating their outlook positively.

Rob Thorpe, head of UK sales for retail and wholesale for F&C Investments, commented: "This year is a game changer for the advice sector, with a raft of legislative changes ahead. Retirees will have the flexibility to decide how they will take their pension pot, and how they will spend it. With this freedom comes the responsibility of making sure they can independently provide for themselves into old age.

"As our survey reveals, advisers are rethinking the options they present to clients looking to retire. The anticipated deferral of pension pots means the investment industry needs to continue to innovate and develop investment products that will cater to the needs of retirees. We anticipate the pension changes will lead to a growing interest among advisers for multi-asset income solutions as they seek products that aim to deliver a regular income stream whilst allowing them to keep the bulk of their capital invested."
To help advisers navigate the changes to the post retirement market, F&C is launching an Income in Retirement support service with input from Tony Wickenden and Technical Connection. This includes a roadshow in March across the UK where Tony Wickenden will present alongside F&C's Multi-Manager team on these wide reaching changes. Advisers can register their place at this
'structured CPD' event at:
http://www.etelligent.co.uk/etelligent/mp-ViewWebPage.asp?CID=87200&CC=THAMESRIVER&FRM=1&page_ID=892

www.fandc.com

Notes to editors: ENDS About F&C Investments, a part of BMO Global Asset Management

F&C is focused exclusively on managing money for its clients. It manages assets for a combination of insurance clients, institutional investors, intermediaries and private individuals. F&C invests across all major asset classes - equities, fixed income and property - and has specialist expertise in asset allocation, alternative investments, liability driven investments, multi-manager, private equity funds and Environmental Social and Governance (ESG) Investing. The F&C Group includes F&C REIT, a global real estate asset manager.
F&C has a rich heritage that dates back almost 150 years and can be traced back to the founding in 1868 of the Foreign & Colonial Investment Trust.
F&C is a part of BMO Global Asset Management, a global investment manager delivering service excellence from 24 offices in 14 countries to clients across five continents. BMO Global Asset Management had approximately US$272 billion in assets under management, as of October 31,
2014. BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a fully diversified financial services organisation with C$522 billion total assets and more than 47,000
employees as of October 31, 2014.

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