Baby boomers make up four out of five dollars under advice
An ageing population has meant retirees and pre-retirees now make up 66 per cent of financial planning clients and 82 per cent of planner funds under advice, Investment Trends research showed.
The December 2013 Retirement Planner Report showed people over 55 now make up four out of five dollars under advice, while retirees held half of all planner funds under advice, up from 46 per cent 12 months ago.
"That's just the tip of the iceberg," Investment Trends senior analyst Recep Peker said.
"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 Australian Bureau of Statistics shows the pre-retiree and retiree population is set to grow from 6.2 million to 7.9 million over the next decade.
Despite low interest rates, annuities are also growing popular among this group, with 32 per cent of planners saying they recommended it in the last 12 months to December 2013, up from 26 per cent in 2012.
"There are strong indications that planners would make even greater use of annuities if some key obstacles were removed," Peker said.
Forty one per cent of planners said a higher rate of return would drive them to recommend annuities more. They want to be able to invest without locking in current interest rates; they also want age pension friendly products and more product flexibility.
The report surveyed 798 financial planners between October and December 2013.
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