View more on these topics

Only 27,000 Irish stakeholder sales in first year

Only 27,000 of Ireland&#39s stakeholder-style pensions have been sold in the product&#39s first year even though it allows a 5 per cent bid/offer spread plus a 1 per cent annual charge.

Irish consumers are spurning the state-sponsored Personal Retirement Savings Account even though its charging structure is what many life offices see as the solution to tumbling pension sales in the UK. Premiums placed into Irish PRSAs in the year to March 2004 total just £41m.

Next week, the Treasury is expected to announce whether the stakeholder 1 per cent charge will be raised. Many industry figures are predicting an increase in commission to 5 per cent on contributions plus a 1 per cent annual charge.

All Irish employers which do not offer an occupational scheme have to give access to a PRSA, although no contribution is required.

The Irish Pensions Board estimates that another 300,000 workers need to take out a PRSA if pension coverage across the workforce is to increase from 53 per cent to 70 per cent.

Irish Life pensions marketing manager Tony Lawless says: “At the last count, three providers using direct salesforces had 78 per cent market share. This is not being sold by brokers in Ireland even though they have two-thirds of the market across financial services distribution generally.”

Standard Life senior technical manager John Lawson says: “I am quite surprised to see these figures from Ireland. But what we need in the UK is a two-pronged attack, with an increase to Irish levels of commission to pay for advice as well as tax incentives for employers to offer contributions to staff through workplace schemes.”

Recommended

Winterthur Life – Winterthur Elite North American Equity

Type: Unit-linked multi-manager fund Aim: Growth by investing in North American equity funds Minimum investment: Subject to the minimum for Winterthur&#39s bond and pension products Investment split: 30% BGI US Equity Index/Gartmore USA Index (Life), 20% Fidelity American, 20% Franklin US Equity, 15% Investec American, 15% MFS US Growth Charges: Initial £135, annual £85 or […]

Pru plans protection lifestyle quiz

Prudential is believed to be placing a lifestyle questionnaire at the heart of its re-entry into the protection market after nearly a year&#39s absence. Despite historically being a major protection player, its move last April to hike rates and remove guarantees on new and pipeline critical illness has left the Pru writing virtually no protection […]

Mortgage network is working for us

I would just like to add a few thoughts to the ongoing debate over whether mortgage intermediaries should become a network appointed representative or be directly regulated by the FSA. The chief arguments against network membership are that you will face a restricted choice of products, be forced into an inflexible compliance regime, and that […]

Ingledew back to develop Barclays advice schemes

Former Berkeley Berry Birch chief executive Steve Ingledew has resurfaced at Barclays Financial Planning following his departure from the listed IFA earlier this year. Ingledew will be commercial director of the financial planning division responsible for developing its advisory proposition on the independent and tied sides. He will report to Jim Reeves who, as Money […]

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