Lack of investment in marketing is causing disappointing sales of
stakeholder pensions, according to research by the Financial Services Forum.
In April, the FS Forum contacted 70 of its members, who are senior
marketers in the financial sector, to gauge their attitude to marketing
stakeholder. The initiative brought a 33 per cent response.
The survey found that of those members offering stakeholder, no one was
planning to commit more than 25 per cent of their marketing budget on
promoting the products and most were spending less than 10 per cent.
There was high awareness of the Government's sheepdog pension ad campaign
but only a minority thought it was relevant to the target market. Just
under half said it was irrelevant. Less than 50 per cent of respondents who
are potential provi-ders of stakeholder said they would be offering a
Marketers see full-time and part-time staff earning between £10,000
and £20,000 a year as the stakeholder target market. Staff earning
more than £20,000 are seen as the next biggest audience.
FS Forum members believe 74 per cent of sales will be on a group basis
and the main stakeholder distribution channel will be IFAs.
Chairman of the FS Forum advisory board Anthony Thomson says: “The
consensus view of our members is that pensions need to be actively sold.”