Financial advisers will lose out on an estimated £80m worth of commission when the government outlaws contracting out of the state pension into private vehicles in April, Standard Life has said.
In May last year, the government passed legislation ending contracting out into defined contribution pensions.
It announced its intention to pass a similar ban on defined benefit schemes during the budget last year, in order to simplify the state pension system.
According to Standard Life, which based its estimates on HMRC data, the move means some £2bn per year - approximately £1,000 per person with protected rights - will no longer be paid into private pensions from state pensions.
It said this could lead to a total loss of £80m worth of commission advisers currently collect on those contributions.
IFAs will be able to replace the income stream if clients increase their private pension contributions, John Lawson, Standard Life head of pensions policy, said.
"After 30 years of work, you can argue to clients that they get no extra benefit by paying into the state system, so they may wish to increase the amount they pay into their private pension scheme," he added.
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