Two-thirds of advisers want to do annuity business on platforms

Nearly two-thirds of advisers would transact annuity business through platforms if this service became widely available, according to research from technology firm Dunstan Thomas.

In April, the firm questioned 31 pension providers and 127 advisers about the pension market.

The results of the survey show that 69 per cent of providers believe platforms should make annuities available while 64 per cent of advisers say they would buy annuities via wraps if they were offered.

Dunstan Thomas says the research suggests providers and advisers see annuities becoming key platform products.

Ascentric managing director Hugo Thorman says: “Platforms should be offering every type of product and adding annuities is something Ascentric is looking into at the moment.”

But Norwest Consultants principal Harry Katz says buying annuities through a platform would result in higher charges for the consumer.

He says: “There would have to be some kind of charge from the platform, so the customer would end up paying more for the annuity which cannot be good.”

Evolve Financial Planning director Jason Witcombe says: “There is nothing wrong with the open market annuity option, so it seems a bit pointless to make them available on platforms.”