Individual pension acc ounts could prove to be an embarrassing white elephant for the Government, according to research by Scottish Equitable among IFAs.
Just 17 per cent of the 1,750 advisers surveyed by ScotEq at its nationwide roadshows in November believe the Government's proposed pension account will provide a valuable addition.
IPAs are scheduled to be on the market alongside stakeholder pensions from April, but, with the absence of any major pension providers or investment houses prepared to confirm they will offer IPAs, the Government's new vehicle looks set for a hollow launch.
The IFA reaction to IPAs is leading ScotEq to predict they will be a flop.
Pensions development director Stewart Ritchie says many product pro viders are not willing to commit to entering the IPA market because the Gov ernment has not released sufficient detail and the current plans seem to be ill-conceived.
Ritchie says: “We have had great difficulty in det ermining what IPAs add to the pension marketplace. Our research indicates IFAs think they will be a white elephant. Even if the regulations are in place to allow providers to offer IPAs, the litmus test will be whether there is any consumer demand.”