View more on these topics

Vast majority of advisers want default Omo

More than 85 per cent of advisers believe the open market option should be the default option for those approaching retirement, according to Sun Life Financial of Canada.

The firm surveyed 262 IFAs and found, despite the high support for the Omo, 86 per cent of respondents believe there is not enough being done to boost consumer awareness.

The literature provided to advisers is also causing confusion, with the findings showing eight out of 10 advisers believe the information is not clear enough.

Head of marketing Mark Stopard says: “The Omo remains something that both consumers and advisers do not know enough about to the detriment of both.

“Consumers should have all the options made clear at retirement, particularly that taking an annuity from their pension provider is not their only option.

“As longevity rises and working patterns change, combined with low rates on conventional annuities, consumers are looking for alternative ways of funding their long-term future, particularly with more flexible retirement options available now.”

The research comes after Money Marketing revealed that Origen Financial Services is set to pass corporate clients with pension pots worth less than £50,000 to Legal & General and Partnership Assurance in a new deal.

The move has been criticised for taking the progress of the Omo back 15 years.

Recommended

Kitson: ‘Encourage use of products within advice matrix’
1

Barclays’ Kitson wants structured tools for IFAs

Barclays Wealth Intermediaries third-party distribution director Roland Kitson has called for IFA portfolio planning tools to incorporate structured products more in their models. Kitson said many advisers are forced to use structured products outside their clients’ model portfolio. He said: “The problem is that a lot of the decision-making processes, particularly the computerised processes that […]

New wealth manager launches

Albert E Sharp Investment Managers has launched in Stratford upon Avon, reviving the name of the firm’s original founder. 

Positive about protection

Against a back-drop of troubling economic predictions and the seemingly endless list of pundits lining up to knock the advice sector it was refreshing to spend the last two weeks helping to judge this year’s Money Marketing adviser awards.

Pensions - thumbnail

Auto-enrolment — don’t leave it too late…

With auto-enrolment (AE) well under way for the UK’s largest businesses, over the next three years an additional 800,000 smaller employers (with less than 60 employees) will start their journey to comply with the legislation. AE mandates all eligible employees and their respective employers to make regular pension contributions into a qualifying pension scheme. To learn more about the legislation read our brief Jelf AEase — simple steps to AE compliance guide.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. What impact will the RDR have on annuities? With no commission available do you think charging a fee will work? It is not going to do anything to help with the take up of OMOs.

Leave a comment