Stakeholder Pensions are still on the road to success according to an IFA survey conducted at Roy...
Stakeholder Pensions are still on the road to success according to an IFA survey conducted at Royal & SunAlliance's recent IFA corporate business roadshows.
At least two-thirds of IFAs give stakeholder pensions a vote of confidence, according to a poll conducted by Royal & SunAlliance, but predict that less than half of their pension sales will come from stakeholder in the future.
Traditional schemes such as group personal pensions and money purchase schemes still appear to be in favour with many IFAs, however employers need to understand the implications of stakeholder if it is to be successful, says the research.
A survey of IFAs attending R&SA's IFA corporate business roadshows, however, suggests employer apathy and lack of knowledge is still hampering the drive for stakeholder pensions by IFAs, says Andy Milburn, Corporate Promotions Leader at Royal & SunAlliance.
"As the launch date draws near, IFAs still have confidence in stakeholder but different issues are beginning to emerge. Our survey illustrates that not enough employers are utilising this opportunity to review their employee benefit package. During each debate, this apathy was attributed to employers' lack of awareness, knowledge and understanding of the changes heralded by stakeholder," says Milburn.
Remuneration was also a consistent theme with IFAs surveyed. According to the survey of over 300 IFAs, fees are increasingly being charged because of the 1% world, clearly differentiating charges from remuneration. Around 35% of IFAs believe fees will become the second most popular form of remuneration in the future, only a fraction behind commissions which 39% of IFAs still favour.
Milburn says evidence suggests business clients are prepared to pay a fee for advice, yet it is clear that fee charging is new to many IFAs and many are looking for help and advice when adopting the fee-based approach.
Royal & SunAlliance's IFA corporate business roadshows were held at nine locations around the UK, from Glasgow to Gatwick, and were attended by 300 IFAs.
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