Software has been launched by CTC to meet the predicted boom in pension transfer business resulting ...
Software has been launched by CTC to meet the predicted boom in pension transfer business resulting from the introduction of stakeholder.
The widespread changes to charging structures of pensions in the 1% world mean intermediaries should be looking to ensure clients are in the right product, according to Nigel Chambers, managing director of CTC.
The software has been designed to allow advisers to analyse whether moving a client's pension assets to stakeholder products will mean they would be better off.
Chambers said: 'Many stakeholder plans are more cheaply priced than the existing plans clients will be in. In the past, transfers were only really relevant when someone left a company. Now, policyholders have a range of reasons to consider transferring.'
Chambers said the axing of final salary pension schemes also made transfers more relevant. He argued that in many cases it could be more beneficial to move out of plans where employees are still certain of what their benefits are worth.
Chambers added that many intermediaries were reluctant to get involved in pension transfers because of their complexity and also the pensions review. He said these factors should not discourage people from actively seeking to find the best products for their clients.
The product will be available on the internet from early next year.
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