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&#39Stakeholder will be half of IFA pension business&#39

Stakeholder pensions will account for half of IFAs&#39 pension business after its launch in April, according to a survey conducted at Royal & Sun Alliance&#39s recent IFA corporate business roadshows.

Almost two-thirds of the 300 IFAs who attended the roadshows predicted that stakeholder would account for half of their pension sales in the future but traditional pensions such as group personal pensions will still have a role.

Advisers believe that for stakeholder to fulfil its potential, employers need to understand the implications and how it fits in with their total employee benefit package, presenting considerable business opportunities for IFAs.

Remuneration was a consistent theme at the events, with IFAs claiming they are increasingly charging fees. Thirty-five per cent believe fees will become the second most popular form of remuneration in the future, just behind renewal plus fund commission, which 39 per cent of IFAs favour.

R&SA corporate promotions leader Andy Milburn says: “As the launch date draws near, IFAs still have confidence in stakeholder but different issues are beginning to emerge. It is clear that fee-charging is new to many IFAs and they are looking for help and advice in adopting this approach.

“IFAs expect fund-based commission to be the most popular form of remuneration in the future. This reinforces our belief in the importance of investment performance, as the best fund managers will maximise returns and generate higher incomes for IFAs.”

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