The majority of IFAs believe they need to double the annuity business they write in order to generate a credible income stream, suggests new research.
The research shows how almost half (46%) of IFAs say larger fund sizes would incentivise them to write more annuities. However, almost a quarter (24%) would be happy to refer small cases to a third party if this option was available, of which half (49%) of these would refer them to another IFA.
In terms of other solutions, one in four IFAs (25%) believes increased support from providers would encourage them to write more annuity business; one in five (21%) say a simplified advice process would also be beneficial. Time-consuming and cumbersome administration was also highlighted with 39% saying simpler process would encourage them to consider writing more business.
Nigel Barlow, head of retirement solutions, at Just Retirement says the research highlights the need to raise awareness of annuities amongst IFAs as well as a potential review of the whole process itself.
"With a staggering 1m people set to retire every year², the annuity market is predicted to be worth £20bn by 2012. An increase in annuity knowledge and a simpler process would lead to more IFAs becoming engaged with the market," he says.
Barlow says there has been some advances in this area in recent and says the company is continuing to work with the industry to continue to improve service provision.
To comment, contact Charlotte Banks on 0207 484 9943 or email: [email protected]
Paul Bruns and Elaine Parkes
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Record numbers of people aged 90 plus
From 3 to 10 October