View more on these topics

Three-quarters of policyholders failing to read wake-up packs

Nearly three-quarters of people are not fully reading providers’ wake-up packs in the run-up to their retirement.

The Association of British Insurers recently questioned 1,606 people who had been sent a retirement pack within 4-16 weeks and found that only 26 per cent had read the wake-up pack in full.

Sixteen per cent of respondents had not read the pack at all while 21 per cent glanced at it. Of those that had at least glanced at the pack, 30 per cent could not recall any of the contents or messages in it.

According to the ABI, 71 per cent of participants who read the pack said it gave them a better understanding of their options at retirement and awareness of the right to shop around increased from 62 per cent to 82 per cent after reading it.

But Just Retirement’s Nigel Barlow says the research gives a “false impression”.

He says: “You start off with 1,606 interviewees but in effect you filter the next stage of the interview by saying do you remember receiving the pack or reading the pack, which filters out something like 1,100 people.

“The purpose of the wake up pack is to wake people up and ensure the vast majority of people read it and not just 500. The fact almost 75 per cent of people did not read the pack is a disgrace.

“If you look at people who have been prompted to read this letter then yes it looks like things are going quite well but actually most people do not read the pack when it comes through the letter box and if they do they do not remember it.”

ABI retirement policy advisers Ben Stafford says “This research gives an entirely valid picture of customers’ views of their wake-up pack. We deliberately sought feedback from people who had read the pack and those who hadn’t at all or hadn’t yet done so, to get different views from different customers. The resulting feedback provides an unprecedented level of detail from which we can build on the improvements already made to wake-up packs.

“A majority, 51 per cent, of those who had not read the pack had not done so because they had not had time, or planned to read it at a later date. Others, 13 per cent, had not read the pack because they intended to refer the decision to their financial adviser. We will be looking at the feedback and focusing on making the packs even simpler and easier to engage with.”


Cazenove to launch Absolute UK Dynamic fund

Cazenove is planning to launch an Absolute UK Dynamic fund, one of the industry’s first absolute funds with a small- and mid-cap bias, on September 7. The fund will be managed by Neil Pegrum and Paul Marriage and will follow the strategy of the Cazenove UK Dynamic Absolute Return Fund—a Cayman-domiciled hedge fund that Pegrum […]

Banks could double salaries

Banks may be forced to double salaries as a result of the FSA’s effort to curb the bonus culture, says City law firm CMS Cameron McKenna.


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