Demand for financial advice is growing rapidly, with a quarter of people saying they are more in need of it now than a year ago, according to research by the Henley Centre.
The findings of the res-earch among 1,000 people, revealed at the Skandia Path-finder Forum this week, also show that 27 per cent of those asked were more likely to pay for professional advice than a year ago, with a particular increase among younger women from lower socio-economic groups.
Henley Centre director of consumer consultancy Martin Hayward told IFAs they would have to look at different markets in the future such as younger people and women.
Industry big hitters and top economists blasted the 1 per cent stakeholder cap at the conference.
Former Bank of England monetary policy committee member and Lombard Street Research managing director Professor Tim Congdon war-ned that the cap was a “price control” which would “discourage supply”.
Congdon's view was backed by Gartmore chairman Paul Myners and SG Asset Management founder Nicola Horlick.
Myners said: “The Government's mistake will be shown in the poor uptake of stakeholder pensions in the next 12 months. I doubt stakeholder sales will reach anything approaching the values some product providers are hoping.”