Government's stakeholder holder ad campaign fails to hit the mark

Research from IFA Promotion reveals that two thirds of the
population have still not heard about stakeholder pensions

In February, IFA Promotion, the organisation promoting the benefits of independent financial advice, commissioned research to monitor awareness of Stakeholder pensions. Unsurprisingly in February, the research found that almost 31 million people, 68% of the population had never heard of stakeholder pension. Yet a month on, with the Government having spent millions on an advertising campaign, still less than half the population (61%) know what a stakeholder pensions is.

The survey also revealed that less than half of the population (47%) even recall seeing the advert and of those that have, most of them are over the age of 65, outside the target market.

Amongst the Government target market for stakeholder, the survey found that awareness was very low: 70% of women are unaware of stakeholder pensions as are 86% of people aged 16 to 24 and 74% of those in lower income groups.

The research from IFA Promotion (conducted by BMRB) also found:

  • Only 44% of those surveyed currently have a pension
  • Only 10% of those surveyed plan to take out a stakeholder pensions
  • 53% are likely to visit an IFA for advice on stakeholder
  • 53% said they are likely to speak to their employer.

David Elms, Chief Executive of IFA Promotion commented: "Clearly, sheep and dogs have not worked and the country is still in the dark when it comes to stakeholder pensions. Until awareness increases, the Government will have a tough job on its hands persuading people to take responsibility for their own pension provision."

IFA Promotion will continue to monitor awareness and understanding of stakeholder pensions over the coming months and circulating regular updates.

To speak to an IFA about stakeholder or pensions in general, people should call the IFA Promotion freephone hotline on 0800 085 3250 or visit www.unbiased.co.uk where details of local IFAs will be provided.

-ends-


For further information please contact:

David Elms
IFA Promotion
020 7833 3131
    or     Shellie Wells/ Pippa Russell
Lansons Communications
020 7490 8828

*Research conducted by BMRB during February 2001. For more detailed questions regarding the research, call:

Joanne Turton
BMRB
020 8566 5000

Notes to Editors

1. Independent Financial Adviser Promotion

Independent Financial Adviser Promotion Ltd. was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents over 9,000 registered individual independent financial advisers across the UK and is sponsored by 31 leading financial institutions. In 2000, over 130,000 people contacted IFA Promotion for details of local independent financial advisers.

IFA Promotion's central belief is:

"Consumers have a right to financial advice that is independent of the providers of financial products - i.e. independent financial advice."

Furthermore independent financial advice should be:

  • Affordable. The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.
  • Convenient. IFA should be available in the location of the consumer's choice, wherever they live in the UK.
  • Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2. Independent Financial Adviser Promotion's sponsors

Barclays Global Investors Funds
BUPA
Canada Life
Clerical Medical Investment Group
Dresdner RCM Funds (UK) Ltd.
Eagle Star
Family Assurance Friendly Society Ltd
Friends Provident
INVESCO Fund Managers Ltd
Investec Asset Management
Legal & General
Mercury Asset Management
National Mutual
National Savings
Norwich Union Life
NPI
        Prudential Intermediary Division
Scottish Amicable Life Plc
Scottish Equitable Plc
Scottish Life Assurance Company
Scottish Mutual Assurance Plc
Scottish Provident Institution
Scottish Widows plc
Standard Life Assurance Company
Sun Life Swiss Life (UK) plc
The Skandia Group of Companies
Tunbridge Wells Equitable Friendly Society
UNUM Ltd
Winterthur Life UK Ltd
Zurich Life Assurance Company

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