The UK's recently introduced pension freedoms are considered a top commercial opportunity by most financial advisors in the country, new research shows.

Nine in ten UK financial advisors view the recent pension reforms as their biggest business development opportunity, according to a survey by Vanguard.

Highlighting the strong demand for retirement income planning following the introduction of pension freedoms last April, two in three say clients come to them specifically for this purpose, according to the survey of 74 UK financial advisors.

“The pension freedom changes have raised a number of questions for UK consumers on how to spend and invest their lifetime savings. However, an even bigger challenge is to ensure people save sufficiently for retirement by encouraging them to develop a financial plan with clear goals,” said Neil Cowell, head of UK retail sales at Vanguard.

To demonstrate the value of advice, Vanguard recently conducted research to quantify the difference between the returns an investor might achieve with an advisor's help and the return they might have achieved if left to their own devices. It found that the difference, which it calls "advisor's alpha", is around 3 per cent per year over the long term and comprises several components, including asset allocation, behavioural coaching and other relationship-oriented services.