View more on these topics

Providers fall short on pension freedoms services

Advisers say the way major providers service pension freedoms is well below their expectations according to research published today.

Financial information business, Defaqto has published its annual review of the service delivered by pension providers as rated by financial advisers.

The online survey took place between June and September 2018 and received 485 responses that measured seven categories of service at providers.

It measured the relative importance of these categories and identified advisers’ preferred providers of individual pension business.

The survey shows personal pensions, drawdown and Sipps are the most recommended types of pension product, and in the same order of preference as they were in 2016 and 2017.

Hybrid and blended solutions have become slightly more popular than last year, with the remaining products staying the same.

Annuities remain at a steady level when compared to 2017, meaning their demise may have been somewhat exaggerated.

Three of the categories are below expectations and three are above based upon the number of above average scores awarded by advisers, with only new business servicing exactly meeting expectations.

Freedom servicing, seen as the most important aspect of service but according to the survey, is performing below expectations.

Defaqto head of insight and consulting for wealth and protection David Cartwright says: “Overall satisfaction remains largely unchanged in comparison to 2017. However, there is still work for providers to do in some of the service categories when it comes to bridging the gaps between service and expectations.

“Results of the survey have shown that providers will need to consider the service they are offering and why advisers (or perhaps advisers’ clients) are not completely satisfied with how they are performing in certain areas.”

Recommended

Market volatility can precede big falls
2

Successful advisers must make clients understand volatility

The key to successful advice is making clients realise the difference between temporary volatility and permanent loss, an American financial adviser has said. Speaking yesterday at the Science of Retirement Conference in London, author and coach Nick Murray gave financial advisers tips on how they should approach their clients. Murray is based in the US, […]

2

Aviva appoints new chief executive

Aviva has named its new full time chief executive six months after Mark Wilson announced he would be stepping down from the role. Maurice Tulloch, who has been with the firm since 1992 and currently overseas Aviva’s international insurance business, will step into Wilson’s shoes as chief executive of the parent company. Chairman Adrian Montague […]

Mark Carney 480
14

Carney says no-deal damage could be less than feared

Bank of England governor Mark Carney has said that previous estimates could have overstated the damage that may be caused by a disorderly no-deal Brexit. Three months ago, the Bank said that, compared to Theresa May’s deal for leaving the EU, a hard Brexit could leave the economy between 4.75 and 7.75 per cent smaller […]

Insurance File Generic 480

Reassuringly focused on claims

By Ross Jackson, senior protection marketing manager We’re sure you’ll have heard your customers say ‘But insurance companies don’t pay claims’ when giving a reason for not wanting to take out protection. In fact, our State of the Protection Nation research showed that 27 per cent of consumers asked didn’t think protection providers paid out […]

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. Julian Stevens 6th March 2019 at 3:19 pm

    I (almost) have a client aged 71, with a serious health condition but, against all expectations, still alive after 8 years. Her PP is worth £97,000 but her financial circumstances are such that she doesn’t need any of it nor is she ever likely to. Nevertheless, she had in mind withdrawing it all in four equal instalments but was told that to do so she would have to provide evidence of having taken RFA. Hence she phoned me.

    I checked with our technical people who told me that if she wants UPFLS, then yes, RFA is mandatory but if she wants FAD, no it isn’t.

    I explained the differences to the client and said tell the insurer you want FAD so RFA is not required. But they just wouldn’t have it, insisting that whichever way she wants to withdraw the money, she MUST prove having taken RFA.

    Having thought about it overnight, I said leave the money where it is and, should you make it to age 75, take out just your 25% TFC and leave the rest, bequeathing it equally to your 8 grandchildren.

    Thoughts anyone?

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