A-Day changes may have increased pensions business, but almost half of advisers believe the complexity and compliance burden they face has also grown over the last year.
Skandia says a survey of 500 advisers reveals just one-third think the new tax regime introduced on 6 April last year has actually made the UK’s pension regime simpler, with 43% claiming it is now more complex, and 24% suggesting it has made no difference.
In addition 45.7% of respondents say pension simplification has increased their compliance and administration burden, with just 2.6% claiming their workload in these areas has actually decreased.
However despite this, Skandia points out 50% of advisers have reported an increase in pensions business, and 47% have seen no change, although 3% claim pension simplification has actually decreased business.
The company suggests there are a number of factors which could be contributing to this increase in pension business, such as the new concurrency rules and annual allowance which has provided more options for clients.
In addition, it says the continued move from with-profits to unit-linked investments within pensions is helping to drive the increased volumes of pension consolidation business, where advisers look to give their clients greater control over their retirement planning.
Nick Bladen, head of pensions marketing at Skandia, says one year on is the right time for the industry to take stock of what pensions simplification has meant in practice, and he says the good news is that business is increasing, and there will continue to be many opportunities for clients to improve their retirement planning.
He adds: “We have seen a lot more pension consolidation since A-Day. Although this can involve somewhat complex financial advice issues, it is clear advisers are ready and willing to embrace it because of the significant benefits consolidation can bring in terms of greater control over investment strategy and simplified administration.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7034 2681 or email [email protected]IFAonline
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