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IFAs predict stakeholder will not be a hit with the public

Most IFAs believe stakeholder will not have a major impact on the pension market, according to a survey by George Street Research.

It found that 79 per cent of IFAs believe stakeholder will make little or no difference to levels of investment into pensions.

The research, which is part of a monthly review of the IFA sector, polled more than 200 advisers throughout the UK.

Many IFAs predict that stakeholder will not be a big hit with the public because they are not interested or motivated to save using a stakeholder pension. IFAs estimate only one in six employers and 2 per cent of the public know about stakeholder pensions.

One in 10 IFAs said stakeholder would have to be made compulsory to make a difference. One in five say tax incentives must be improved to encourage people to invest.

IFAs also said they have little motivation for promoting stakeholder and say the absence of guarantees on performance is a further deterrent.

George Street Research managing director Jo Faw cett says: “Many people are seeking reassurance and a product offering with some basic and simple guarantees to help them into the pension arena. Otherwise they feel it may be safer to put any cash into a bank or building society account.”


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