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IFAs beat direct advisers on life and pension persistency

IFA persistency levels for life and pension business in the past year again proved better than for single-tied advisers, says an FSA report.

IFAs recorded the highest persistency for whole of life policies – 82.7 per cent, up from 81.3 per cent over four years – while direct advisers’ persistency increased from 77.3 per cent to 79.7 per cent. IFAs also had higher persistency for other life policies, rising to 67.5 per cent from 64.2 per cent. Direct advisers’ persistency fell to 47.8 per cent from 50 per cent.

IFA persistency levels for personal pensions rose to 43.6 per cent from 40.6 per cent while single tied advisers saw persistency levels fall to 43.5 per cent from 45.1 per cent.

Persistency has plunged by 27 per cent for personal pensions since 1993. The FSA puts this down to the rise of group personal pensions, where group policies often lapse when people change jobs.

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The value of an investment and any income from it can fall as well as rise and you may not get back the amount originally invested. Forecasts and past performance are not a guide to future performance. Some information and statistical data herein has been obtained from sources we believe to be reliable but in no way are warranted by us as to their accuracy or completeness. These are Neptune’s views and as such this document is deemed to be impartial research. We do not undertake to advise you of any change to our views.

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