Advisers are predicting an increase in demand for pensions transfers post A-Day, as clients look to consolidate their pensions in one place, claims research from Skandia.
Of 500 advisers surveyed by the company, 66% said they expect to see more pension transfer business post A-day, with just 6% thinking there will now be less opportunities.
Skandia says pension consolidation has been a common theme in the run up to A-Day as advisers have been reviewing their clients’ pension arrangements to make sure they took advantage of the introduction of the new tax regime.
Results of the research suggest the pension transfer market will continue to flourish following A-Day as consolidating multiple pension pots into a single plan allows advisers to reassess their client’s needs and make sure the asset allocation within the funds is appropriate.
Skandia also points out single valuation statements, annual reviews and asset allocation tools also make it easier for advisers to review portfolios on an ongoing basis and provide advice on investment strategy where necessary.
As a result, Skandia says it has seen its pension transfer business in the first quarter of 2006 increase by 133% compared to the same period last year, with a rise of 232% from the first quarter of 2004.
Billy Mackay, pension marketing manager, says the research is very encouraging, as A-Day is just the beginning of a new pension regime, adding it is good to see advisers are focusing on the opportunities which continue to exist.
He adds: “We expect consolidation to continue to be a key theme within the industry as advisers look to simplify their client’s pension arrangements and focus on the underlying investment strategy.”
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