Who's Afraid of Pension Advice?

Pension enquiries are the biggest source of new business; here’s a cost-free way to convert them

Pensions are an area of finance that almost all people will face, yet are often the most confusing.

At Unbiased they make up 62% of all IFA enquiries, but they’re a source of great concern for the clients that submit them.


Why such concern?

Pensions incorporate the two big pressure points of investments and mortgages in one. Like investments, there’s the worry of losing money saved over many years. And like mortgages, there’s the worry of making big decisions about the future.

This is why the most common client questions asked are if they are doing the right thing, and what others in a similar position are doing. These are questions based not on the excitement of making the most of their money, but the fear of failing to.

And this fear of failing is the number one concern of those seeking pension advice. According to FTAdvisor, 72% of clients say that their biggest pension fear is outliving their savings.

So if people are worried about getting their pension wrong, what stops them seeking advice?

According to a Financial Times survey, 17% are most put off by the cost, and 23% don’t know which advisers they can trust.


How to break the barriers

So how can you break down these barriers?

Before talking products, fact-finding their situation, or showing your expertise, you must simply make them comfortable.

Even if the solution to their concerns seems obvious, let them know that they’ve made the right choice, and acknowledge their fears. Show you understand them.

This is a vital part of making new clients open to your advice. The cost can be off-putting. But once you’ve relieved their fears, then your help is something they’re more willing to pay for.

And to tackle the most common questions, are they doing the right thing and what are other people doing, use testimonials.

According to the Financial Times, 79% of clients receiving pension advice are either satisfied or very satisfied, and the best way to show this is through other people’s words. If you’re lacking these powerful conversion tools, think back to the clients you were most integral in helping and ask them to share their experience – the vast majority will be more than happy to.

By better understanding your new clients’ fears, and by putting them to rest at first contact, you’ve laid the foundations on which a fruitful client relationship can be built.

About the author
Oliver Broadhurst
Oliver Broadhurst
Oliver has been writing professionally in the financial services space for over five years, focusing on topics ranging from customer experience to industry regulation. He’s consulted with organisations such as UK Finance and the FCA to produce business articles, industry reports, and white papers, while providing insight as a member of panels including The Opening Banking Implementation Entity’s Consumer Group.

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