View more on these topics

Partnership warns of RDR ‘annuity apartheid’

Partnership chief executive Steve Groves has warned the UK will face an “annuity apartheid” unless policymakers and the financial services industry move to tackle the advice gap for people with small pension pots.

The International Longevity Centre published a report last week which exposed the potential negative impact the RDR will have on people with “modest” pensions worth less than £40,000.

Speaking at an ILC debate in the House of Lords, Groves (pictured) said an unintended consequence of the RDR will be to exclude people with small pots from accessing financial advice.

He said: “We are facing an annuity apartheid following the RDR. If something is not done today then we will end up in a situation where only the most wealthy will be able to shop around when they reach retirement.

“Consumers with modest incomes will struggle with the concept of paying a fee for financial advice and as a result will be more likely to miss out when they eventually buy an annuity.”

He pointed to Partnership research which suggests people missed out on £7bn of retirement income between 2000 and 2009 as a result of failing to shop around.

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