View more on these topics

Gay wants IFAs to take lead on advice for small pension pots

Aifa director general Stephen Gay has urged the IFA community to back Partnership’s call for a debate on the risks facing people with small pension pots as the RDR approaches.

Last week, Partnership managing director of retirement Andrew Megson called on the Government, trade associations and financial advisers to address the problem of people with small pension pots being unable to afford independent financial advice.

He cited research which shows less than half of annuitants who have shopped around for a retirement product know what an annuity is and 75 per cent of those who chose an enhanced annuity did so because it was recommended by a financial adviser.

Gay told Money Marketing: “It is up to all of us to show leadership on this issue. Leaders step forward and say, what can we do about this? I would like to think there are enough leaders in the IFA community to take part in the debate that Partnership is suggesting and find a way through it.”

Gay also wants IFAs to better communicate the benefits of taking advice about annuities.

He says: “People who are tempted to self-serve in terms of annuity selection need to understand that an important part of the advice proposition is the transfer of risk from the client’s shoulders to the professional’s shoulders. That transfer of risk costs money.

“This is something I do not think the IFA community has communicated well enough. It is something we need to embrace and communicate to clients as an important reason to go to an independent financial adviser for help.”

Worldwide Financial Planning IFA Nick McBreen says: “Advisers have to get behind what Partnership is trying to do here. This is potentially a huge consumer detriment issue and it is only going to get worse.”

Recommended

4

Government rejects calls to increase drawdown income limits

The Government has rejected calls to increase the pension income available through drawdown by restoring the 120 per cent GAD limit. In a letter responding to AJ Bell chief executive Andy Bell, Treasury financial secretary Mark Hoban also rejects calls for a  review of the way drawdown income is calculated using gilt yields. Hoban says […]

Pitmans picked for Standard Life defined-contribution master trust

Standard Life has launched a defined-contribution master trust. It is targeting firms that want to set up a pension scheme under trust but are concerned about the responsibilities with appointing trustees. The scheme has been added to the Standard Life trust-based pension bundled DC product launched in April last year. Standard will provide the admin, […]

Breedon will retire from L&G next year

Legal and General chief executive Tim Breedon is retiring from the firm at the end of next year. Breedon joined L&G in 1987 and became group chief executive in January 2006. L&G says it will start the process of identifying and appointing his successor over the next few weeks. Breedon says: “It has been an […]

Labour: Love calls on FCA to push mutuals

Treasury select committee member Andy Love has called for the Financial Conduct Authority to be given a primary objective to foster diversity and promote mutuals. Speaking at a fringe event at the Labour party conference in Liverpool this week, Love said the move would be in line with the coalition agreement which commits the Government […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com