View more on these topics

MetLife chief: Govt guidance must consider new retirement products

Pension-pot-700.jpg

MetLife UK managing director Dominic Grinstead has called on the Money Advice Service and Pension Wise to do more to inform customers about new retirement income products.

Speaking to Money Marketing at the Labour party conference in Brighton yesterday, Grinstead said the Government-backed services must do more to make customers aware of choices outside of annuities or drawdown offerings.

He said: “We would like them to make sure that people contacting them over the phone, or face-to-face or through the website, are aware that their choice isn’t simply between annuities and drawdown, and that a new breed of innovative solutions are arriving.”

Grinstead said he wants to see the retirement space operating in a similar way to the mortgage market where, he argues, choice and competition are fostering innovation.

He said: “The more people are aware of the products out there, and the more people have got access to financial advice after that guidance, then the more likely we are going to have better outcomes for those people in the long run.”

As a result, the MetLife boss said he hopes the Treasury’s Financial Advice Market Review will provide fertile territory for the advice market to grow.

“There’s a real danger that people are overwhelmed by their choices at retirement.

“We believe advisers are very much part of the solution to that, and we support the FAMR, but we think there should be as much focus on how we can grow the advice sector after years of retraction.”

And Grinstead added that traditional advice training routes will need to return in order to produce the next generation of advisers.

He said: “Historically,  a lot of people have made a career in the industry from going into a direct salesforce, maybe at a bank assurer or a product provider, and then graduated into advice.

“We need some of those core routes to be brought back.”

Recommended

Will jitters in Brazil prompt the next big equity sell-off?

The rating downgrade of Brazil’s sovereign debt to “junk” earlier this month is another alarm that the largest Latin American economy is on the path to recession, and has raised fears of a potential equity sell-off in the region. With the country’s second-quarter GDP dropping by 1.9 per cent compared with the first quarter of […]

Steve_Groves_Partnership

Partnership and Just Retirement to raise £150m to fund merger

Partnership and Just Retirement are to issue shares in a bid to raise £150m to fund the merger of the two companies. In August the enhanced annuity specialists announced they would be combining to form JRP Group and targeting £40m of annual savings. Partnership is to offer new shares in its business equivalent to 10 […]

Chris-Hannant-poses-side-frontal-in-2013.jpg
3

Apfa: FCA’s smarter comms too expensive for small firms

The FCA’s best practice examples of smarter consumer communications fail to acknowledge the “prohibitive” cost of technology to smaller firms, says Apfa. In a wide ranging discussion paper on communications in financial services in June, the FCA urged the industry to adopt “innovative” techniques to move away from a “paper-based mindset”. It cited a number […]

1

Man and machine: The human face of robo-advice

Robo-advice tools which allow firms to automate certain parts of the advice process are being tipped to take off in the UK. While much attention has been focused on the launch of algorithm-based investment portfolios, other models are being developed which experts say could help advisers to reduce their costs while retaining the human touch. But […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. If one aspect of Guidance is identify “Relevant Options” there will be cases where unit-linked guarantees are relevant

Leave a comment