View more on these topics

IFA survey emphasises compulsion concerns

Stakeholder pensions will be a flop unless compulsion is introduced, according to IFAs surveyed in Swiss Re Life& Health&#39s Life Insurance Report 2000.

The stark warning comes as advisers believe the success of stakeholder will be undermined by decision trees which are perceived as so complex they will hamper the low-earning target group from buying the pension, rather than encouraging take-up.

Swiss Re says its report demonstrates IFAs have strongly rejected the concept of decision trees but feel the advice needed by low-earners is financially out their of reach.

An unattributed group of IFAs is cited as saying: “The people to whom stakeholder is technically targeted do not have the money and we are not going to help them because it is a waste of time to do so. I wonder if they realise it is going to be a flop and it is just a precursor to making it compulsory.”

Stakeholder is also believed to be doomed because it grossly underestimates the need for advice.

The research shows a strong desire for face-to-face stakeholder advice, with 63 per cent of 1,027 consumers surveyed saying they prefer this advice channel over any other, including the phone.

The report details the findings of six discussion groups of 10 IFAs plus interviews with 20 senior life office officials.

Swiss Re says the report illustrates a widely held belief that compulsion is needed before stakeholder is taken up in the numbers wanted by the Government.

Swiss Re Life & Health communications manager Tony Worthington says: “The findings of the report seem to demonstrate the widely held industry belief that stakeholder will not succeed until compulsion is introduced.”

Recommended

Petrol shortage leaves IFAs running on empty

IFA firms have suffered losses running into tens of thousands of pounds following the petrol crisis which swept the country last week.IFAs claim to have been hit hard by the fuel shortage, with clients unable to reach their offices and IFAs having to cancel home visits.Many firms predict they will never be able to recoup […]

PFW fits the bill

For once, changes to the Finance Bill may actually achieve what they are meant to. The bill introduces a number of changes to pension fund withdrawal rules from October 1.These changes are designed to ease administration and offer greater flexibilityto scheme members altho-ugh the system implications may prevent many product providers from taking immediate advantage.The […]

Three providers lay their stakes

Following CGU Life&#39s entry into the pre-stakeholder market with its new product, Your Pension @ CGU, we asked our broker panel to compare it with Equitable Life&#39s 2000 personal pension plan and Friends Provident&#39s New Generation plan.Commenting on the mar-ket suitability of the CGU plan compared with the Equitable Life and Friends Provident products, Price […]

Toby Strauss

Takeovers, name changes, flotation – it has been quite a year for mortgage broker John Charcol.At the helm with B&B chief executive Christopher Rodrigues et al is enthusias-tic sailor and CharcolOnline managing director Toby Strauss, an e-commerce and consulting whizz brought in toset up the broker&#39s online operation in November 1999.As a member of the […]

Happy while you work

Well we’ve had scorching weather (yes even up here in Scotland!) and now the Euros 2016 are on – you can’t blame people for wishing life was just one big holiday.  With all these distractions it sometimes feels like work just gets in the way of having a good time! But sunny day skivers are […]

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