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Pensions are still the UKs number one advice need...

...BUT WITH A-DAY IN SIGHT, MANY MAYBE LEAVING IT TOO LATE TO BENEFIT FULLY OR AVOID LOSING OUT

 

Retirement planning remained the UK consumer’s top motive to take financial advice in the final quarter of last year, according to ‘IFAP’s Advice Drivers’ - the snapshot report produced by IFA Promotion (IFAP), the organisation promoting the benefits of independent financial advice.  Indeed, the second of IFAP’s quarterly reports, based on 130,600 requests for local IFAs, shows that the share of consumers seeking advice on their retirement provision rose significantly toward the end of 2005 [see p2 Fig 1].

 

However, an examination of 2004’s trends indicates this increase is only 4% more than last year’s seasonal swell in appetite for pension advice, and does not yet demonstrate any significant flight to pre-A-Day advice [see p2 Fig 2].

 

Very positively, ‘IFAP’s Advice Drivers’ report also confirms that consumer appetite for independent financial advice grew substantially in 2005. In total, IFAP handled over 530,000 requests for local IFAs last year, a year-on-year increase of almost 100,000. The report, compiled from comprehensive data on the selections people make when requesting IFA details through IFAP, reveals that of the consumers seeking product-led financial advice - the top ten advice drivers at the end of 2005 (December) were as follows:

 

	Top ten advice drivers	December 05
1	Personal Retirement Planning	34%
2	Investment & Savings	23%
3	Mortgages	18%
4	Stakeholder pensions	9%
5	ISAs/OEICs/Unit Trusts	8%
6	Personal Protection	7%
7	Taxation Planning	7%
8	Saving for Children	3%
9	Investment Trusts	3%
10	Equity Release	3%

Source: IFA Promotion (NB: More than one product area can be selected)

 

David Elms, Chief Executive of IFA Promotion, commented, “At the time of our last report, we expressed our hope that in the following months, the A-Day message would have begun to hit home and that people would be taking more active steps to review their pension arrangements in advance of April’s far-reaching reforms. However, despite A-Day awareness tripling, it is still not attracting the action that one might expect and many may well miss out as a result.”

 

He continued, “The encouraging news is of course that we were able to put well over half a million people in touch with a local IFA to best suit their needs last year.”

 

Consumers can obtain details of local IFAs who focus on retirement planning or other specific product areas at www.unbiased.co.uk or by calling 0800 085 3250.  They can also select IFAs with additional qualifications, certain payment options, or state a preference to see a male or female IFA.

 

For further information please contact:

David Elms                                                Chloe Mann/Holly Godden

Chief Executive                                          Lansons Communications

IFA Promotion                                            020 7294 3681 / 020 7294 3674

020 7833 3131

 

Fig 1 - Advice Drivers: Trends over past 12 months