Scottish Life has launched the first online decision tree for stakeholder on its website. The dec...
Scottish Life has launched the first online decision tree for stakeholder on its website.
The decision tree is designed for intermediaries to use with employers who are considering setting up a group stakeholder scheme for their workforce.
Scottish Life's head of pension strategy Steve Bee said: "There is a real need for a user-friendly version of the Government's decision trees and by using the internet this is exactly what we have produced. By doing so we hope to have made many IFAs' lives that little bit more stress-free.
"IFAs are the only people who will be able to credibly distribute in the stakeholder regulatory environment. Has the employer got the time to go through all of this with each employee? Probably not. This is where the decision trees come in useful," said Bee.
Scottish Life's head of e-commerce Jim Smith said: "This is not a self-service decision tree for employees. It is to be used by IFAs to help an employer choose the right pension product."
The online decision tree can be [email protected], which is part of the group's website at www.scottishlife.co.uk.
Bee criticised the simplistic nature of the government decision trees, which he believes could lead people without enough knowledge of pensions to purchase a stakeholder as opposed to a more suitable type of investment.
Scottish Life has in the past lobbied vigorously for the inclusion of the Minimum Income Guarantee and the new pension credit within decision trees but without success.
"People naïve in pension matters will find it hard to use these trees. I think used without pension advice they're highly dangerous," said Bee. "They take a very simple point of view that people follow decision trees. We're in probably one of the most complex investment areas in the world. During our pensions roadshow of the past four months we've been emphasising the point that its much more complicated than that."
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