More than 80% of IFAs say clients use alternatives to pensions in retirement planning, according to a report by financial services publisher Tax Briefs.
The Pensions Report 2007, published next Tuesday, shows consumers use vehicles such as property, ISAs and insured investment bonds for long-term savings.
Malcolm Small, chairman of The Pensions Report, says: “[Consumers] appear to be voting with their feet and walking away from pensions as a vehicle for retirement saving.
“It has become clear that consumers are, for a range of reasons, completely disengaged from pensions as a whole, whether occupational or personal. They simply don’t trust anything they are told about them, whether by government, employers or advisers.”
The report also shows 63% of IFAs have seen an increasing trend in clients seeking to control their own pensions through self-investment. It reveals SIPP business has grown rapidly, at the expense of personal pensions and stakeholder.
More than 20% of advisers surveyed expect SIPPs to make up 60% to 100% of their individual pensions business in five years.
Today figures from Baring Asset Management show more than three million people rely on property investments to fund their retirement.
To comment on this story contact:
Tel: 020 7034 2679
E-mail: [email protected]
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till