View more on these topics

Misery of pensioners in long wait for cash

Providers have been condemned for horrendous administrative delays to transfer pension cash under the open market option, leading to calls for a single discharge form.

Partnership Assurance sales and marketing director Ruth Clarke told Money Marketing’s at-retirement round table that the worst delay in her experience is 253 working days.

This prompted Living Time sales and marketing director Dave Harris to suggest that companies may have to be named and shamed for delays in future.

Clarke said: “We need to make the exercise of the open market option much more efficient as a transaction. This is something we have told the FSA. The number of stories you hear about people losing guarantees because of delays is terrible.

“Missing income if you are relying on that income because all your life you have been used to having a regular wage, even for a couple of months, because someone cannot pay the money across, is just unacceptable.”

PI Financial director Tim Sutcliffe said: “Surely, we as an industry can deliver the tax-free cash to the client on their retirement and start the income stream in a month?”

Kerr Henderson associate Mike Hardy said: “We have got a single application form for impaired life. Let us bring in a single discharge form so you do not have to ring up, wait half an hour in the queue and then it takes six weeks to send out. Why can’t we have a unified discharge form?”

Retirement Partnership managing director Steve Lewis said: “A life insurer will only change back-office admin systems if its hand is forced. Unless the back-office system is overbearing and causing a huge cost, there is no way they will make changes on this.”

Recommended

NU Healthcare targets IFAs with IP

Norwich Union Healthcare is starting an individual income protection product for the intermediary sales channel. Income protection solutions offers guaranteed and reviewable rates and flexibility of options.

Agricultural fund from Schroders

Schroders has started an agricultural land fund which invests in private equity companies, farm management businesses and related funds.

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