The Big Market for Pension Deccumulation Advice
The FCA’s June 2019 Survey of the Retail Intermediary Market found there were 26,677 regulated financial planning advisers in the UK. These advisers are split pretty evenly between those who work for the largest firms, and the rest of the market. Interestingly, a recent survey by Plimsoll showed that the largest financial firms in the UK write around 48% of total advice business so the good news is that size really isn’t everything.
ONE ADVISER FOR EVERY 120 PEOPLE LOOKING FOR ADVICE!
To put this into perspective, there’s only one adviser for every 120 people immanently seeking pension deccumulation advice. <p>Openwork’s 2019 survey of the advice market showed that roughly 18 will already have an adviser, 102 will be in the market for advice, and based on Plimsoll’s survey, 51 will end up with one of the big firms.</p>
<p>Taken together, this means for every adviser working in one of the UK’s smaller firms, there are roughly 51 people looking for pension deccumulation advice. Now I know that doesn’t sound like a big number, but this means the pension market segment that small financial adviser firms are really interested in contains 741,642 individuals!
It’s a fact that the majority of small firms source their new clients almost exclusively by seeking referrals, either from their existing clients, from their professional connections or from networking groups like BNI. At best, in the long run they acquire a couple of new clients each month through this route.
Only a very small number of firms try to attract new clients directly using a proactive marketing strategy with SEO or Pay Per Click Advertising campaign, and Even then it’s common for individual advisers to quickly limit the number of clients they actively deal with to between 100 and 120.
This leaves a huge opportunity for financial advisers to significantly increase their market share, and success is almost guaranteed for the more ambitious firms that choose to box clever and implement a bespoke lead generation strategy.