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Report puts 60,000 jobs on the line

The number of financial advisers could plummet by a third and 50,000 jobs would be lost at life offices if the Turner report’s National Pension Savings Scheme is introduced.

The plan would see 10,000 brokers and support staff on the scrapheap, warns consultancy Deloitte & Touche, due to the reduced role of advice in the pension market. The shrinking of the pension sector could also see 50,000 jobs lost from life companies, with pension revenues dropping by a third.

Deloitte partner Richard Baddon says: “The life and pension industry has invested an enormous amount of time and energy into the infrastructure and support of highly regu- lated sales. The report is in danger of making the whole sector unnecessary.”

Aifa deputy director general Fay Goddard says: “This could have a significant impact on advice but IFAs are resilient and they go beyond just pension advice. There are huge opp- ortunities for diversified inv- estments and there are plenty of opportunities for IFAs to run alongside a scheme of this nature.”

Syndaxi managing direc- tor Robert Reid says: “There is still a role for IFAs in this sector as there is still a place for investment counselling but the role of the IFA will have to start to change.”

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Correspondent’s week

This week by John Greenwood, deputy personal finance editor of the Sunday Telegraph

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