Recently cross-party politicians and industry leaders signed a joint letter calling on the Government and the FSA to address the risk a post-RDR advice gap could pose for people with small pension pots.
The open letter, drafted by ILC-UK chief executive Baroness Sally Greengross and sent to Treasury financial secretary Mark Hoban, pensions minister Steve Webb and FSA chairman Lord Adair Turner, called on ministers and the regulator to convene an urgent retirement income summit to address the issue.
The letter was signed by 16 people, including former Treasury select committee chairman Lord John McFall, MP Frank Field, NAPF chief executive Joanne Segars, Aifa policy director Chris Hannant and Money Marketing editor Paul McMillan. Recent research from MetLife reveals that two-thirds of advisers are already addressing some of the issues and would be willing to reduce fees for clients with pension pots worth less than £50,000. The research, which is based on a survey of 100 IFAs, found that 64 per cent would cut fees in order to provide a service to people with small pension pots.
MetLife UK managing director Dominic Grinstead says: “With the onset of auto-enrolment in October 2012 and the predicted sharp rise in small pension pots, it is encouraging that the majority of advisers would be willing to offer advice at a reduced cost to those with savings worth less than £50,000.”
If you need advice on your pension Independent Financial Advisors Enable are here to take you through the steps what-ever size your pension pot.
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