View more on these topics

Pensions worth more than 1%

Reading Peter Jordan&#39s Sandler Forum article (Monday Marketing,

February 13) makes me realise just how far head office people are

away from the real world of dealing with the public on pension


Peter Jordan naively comments that all IFAs need to do is make sure

the products they recommend and the advice they provide really do add

value relative to stakeholder products. The whole point is that

clients have no idea as to the value of the advice until their

pension policy matures and this may be in 30 to 40 years&#39 time

Mr Jordan still makes the mistake of assuming that the commission

relates to the cost of advice at the time but the reality is that the

help and advice we give to our clients is throughout their working

life, culminating in helping to smooth through the payment of an


As we all know, this is the time of most stress for our clients,

where they need the most help and where, sadly, many of the annuity

companies&#39 administration sections are woefully inadequate.

The hard fact is that a pension plan never was and never will be a

simple product where a 1 per cent charge is remotely sensible and we

need everyone to hammer this home.

In the meantime, it is the public who are losing, as IFAs like myself

cannot afford to spend as much time as previously with existing

clients and turn a lot of business away. While charitable work is

admirable, it does not pay our mortgages and other living expenses.

I really would like to see Mr Jordan, Mr Sandler and all others who

even dream of a 1 per cent world working as IFAs for as long as it

takes to experience life in the real work of dealing with pensions

and also realising that, to advise a client properly on pensions, one

has to talk about all the other pension plans which the client has

amassed over the years. Very little is simple, believe me.

Incidentally, in your same paper, Standard Life (which I understand

receives more pension business than any other company) says providers

will turn away from the new Sandler suite of products if they include

a 1 per cent charge cap and points out, quite rightly, that

stakeholder has failed to reach the poorer people who it was supposed

to encourage.

The simple truth is that the pension companies obtain most of their

business from IFAs. If it is worth our while, we will help market,

advise on and continue with the substantial ongoing servicing of this

business. If not, we do not really want to know and, without our

commitment, a substantial volume of pension provision will simply not


How Andrew Smith can describe stakeholder as a success can be nothing

but further spin. We really need to see more people telling it how it


JJ Russell Green Malvern, Worcestershire


Intelligent Finance goes on the offset offensive

Intelligent Finance has sparked a mortgage row by claiming that rivaloffset mortgage products are “poor imitations” of its own.IF&#39s new chief executive Grenville Turner, who replaced founder JimSpowart in January, claims the company&#39s product is superior to otheroffsets because it is the only one which lets borrowers combine theirmortgage, personal loan, credit card, current account […]

If providers can&#39t assess risk, how can investors?

Lorna Bourke states: “If 15 warnings in the prospectus for the LloydsTSB extra income and growth plan that you may not get your money backare not enough, what are the product providers to do?” (MoneyMarketing, January 30).Logically, if a timebomb is surrounded by 15 warnings, all shouldkeep away, however harmless the bomb appears.The peril of […]

FSA to investigate IFAs&#39 ability to advise on retail property funds

The FSA is to investigate the quality of IFA advice on retailproperty funds and buy-to-let properties.Speaking to delegates at the Schroders Property Conference in Londonlast week, outgoing FSA chairman Howard Davies said the regulator hada number of concerns about consumer and adviser understanding ofproperty funds.He questioned whether IFAs&#39 knowledge, understanding andsophistication has kept pace with […]

Selestia – Self Invested Personal Pension

Thursday, 20 February 2003 Type: Full Sipp Minimum investment: Lump sum £2,500 Investment choice: All Inland Revenue permitted investments Administrator: Hornbuckle Mitchell Charges: Initial £210, annual £390 Commission: Initial 3%, renewal 0.5% Tel: 08456 410410

Image courtesy of Stuart Miles at

Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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