Market analyst Datamonitor says in a new report out today that customers are getting an increasingly ...
Datamonitor says this is creating an advice "vacuum", which IFAs and providers need to address.
Yet that same gap is creating an opportunity for IFAs willing to advertise the fact they provide face-to-face advice on the issue, as this should tap into the burgeoning demand.
And in another irony, it is precisely those customers most likely to be in need of advice - the low and middle income earners being targeted by stakeholder - which are now suffering most from this state of affairs.
The contradiction between the need for advice and the people actually getting it is likely to be a major factor behind the as yet low takeup of stakeholder pensions in their first six months, Datamonitor says.
The structure of stakeholder is also creating other problems.
"The only way that most people are able to receive advice is through their employers, but employers have no incentive to promote stakeholder pensions, with most small businesses viewing the requirement that they designate a scheme as just more red tape," Datamonitor says.
"In addition, profiders and IFAs are reluctant to give advice to SMEs where stakeholder take-up is likely to be low."
"Those customers that want face-to-face advice on whether they should take out a stakeholder pension need to shop around in order to seek out those advisors that are offerin it. They should not be deterred by the fact that they will often be pushed to use decision trees or basic information packs instead."
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left
Continuing the Architas education series for clients.
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