Stakeholder is missing its core target market
- RESEARCH FROM IFA PROMOTION REVEALS THAT 77% OF WOMEN HAVE NEVER HEARD OF STAKEHOLDER PENSIONS -
New research from IFA Promotion, the organisation promoting the benefits of independent financial advice, reveals that 77% of the female population, a staggering 20 million women, have not heard about stakeholder pensions. Women are one of the Government's core target markets for the new product, as they are more prone to career breaks and, on average, earn lower salaries. Despite this, their awareness is much lower than their male counterparts - when questioned, only 33% of women know about stakeholder pensions compared to 41% of men.
The research also uncovers widespread confusion amongst women when it comes to pensions in general; over half (55%) find pensions confusing, helping to explain why currently two thirds (66%) of women have no pension arrangements at all.
The research from IFA Promotion (conducted by BMRB) also looked at other target groups for stakeholder and found:
- there is a dramatic drop in awareness amongst lower income groups - just 10% have heard about stakeholder.
- only 16% of 16 - 24 year olds, another group targeted by the Government, have heard about stakeholder pensions.
- awareness amongst part-time workers and the unemployed is particularly low; only around 5% have heard about stakeholder pensions.
- stakeholder seems unlikely to attract people who currently have no pension provision - 88% are not planning to take out a stakeholder pension.
"It waits to be seen whether talking dogs will have any effect on public awareness. Far more important, we believe, is easy access to professional, unbiased advice to help clear up this confusion and to encourage people to commit to their future savings in the way that works best for them."
IFA Promotion will be monitoring awareness and understanding of stakeholder pensions over the next few 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.
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 November 2000. 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 32 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 Hill Samuel Asset Management Group 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 |