Direct online access to pension details will reduce the costs of administering a stakeholder pension...
Direct online access to pension details will reduce the costs of administering a stakeholder pension and increase member interest in their pension, according to the Chambers Townsend Consultancy (CTC
To enable this, CTC has developed an internet-based interface connecting IFAs, providers, administrators, employers and employees
The system is aimed at product providers who would enable the system to be linked to its database and pension information. The internet sits in the middle as a communication channel for all parties, allowing each of them to make changes and keep up to date on the details. Each separate party involved would have a different password to the system and warnings and limitations on scheme changes can be incorporated by the provider if a member makes too many switches or has not been monitoring his portfolio
Payroll software can be downloaded from the site, giving small employers the opportunity to electronically handle payroll and further simplifying contributions to stakeholder
Nigel Chambers, director at CTC, said: "This is freeing IFAs from unnecessary administration and giving them speedier access to scheme information, leaving them more time to focus on advising clients. Access to information through the e-stakeholder platform will allow IFAs to prompt reviews where contributions have remained unchanged for some time
"At a time when margins are being squeezed, the industry needs to find new ways of delivering schemes within much lower limits. By removing the majority of the administration cost, the squeeze on other elements of the cost base will be eased
Clarke replacing Balkham
'Deep-dive analysis of client behaviour'
Ways to mitigate April’s increases
The best equity income funds examined