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Advisers get boost from consolidation

Nearly three-quarters of advisers say pension consolidation business has grown since A-Day.

Research by Skandia found that only 1 per cent of advisers have seen pension consolidation business decrease in the last 18 months.

Eighty-five per cent say the main benefit arising from pension consolidation is that clients have more control over their investment strategies.

Access to more flexible investment options with the rise of wrap platforms is also important, according to 61 per cent of advisers. Forty-six per cent said single valuation statements are a key advantage and 40 per cent cited access to flexible options at retirement.

Advisers believe it is not just very wealthy clients who can benefit from consolidation, with 43 per cent saying they would consider it for clients with pension savings of any value.

For most advisers, the average number of pension plans that need combining into a single scheme is three. However, 25 per cent say the average is four schemes and 9 per cent say it is two.

Head of pensions marketing Nick Bladen says: “Advisers are using pension consolidation to give their clients control over their investment strategy and access to more flexible investment options.

“By embracing today’s technology, there is a real opportunity to improve efficiency in portfolio construction, management and review, thereby adding further substantive value for clients.”

Informed Choice director Martin Bamford says: “Our pension consolidation business has been rising over the past two or three years due to a combination of factors. There is growing awareness among consumers which, combined with some aspects of the rules being made simpler from A-Day and the launch of stakeholder, has prompted this rise.”

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