Advisers call for simplified pension products

Research for MetLife shows more than two thirds (68%) of advisers believe simplifying products is the most effective way providers can support them following the launch of pension freedom ahead of 48% who believe developing new products suitable for pensions flexibility would be most effective.

Just one in 10 advisers questioned believe providers are well-prepared for the launch of pensions flexibility with concerns about the legacy issues of providers being one of the biggest worries.

Around 68% of advisers say they are worried about the ability of providers to adapt their existing products to pensions flexibility while one in three (33%) are concerned about the lack of face-to-face contact with intermediaries by provider salesforces and the lack of clarity on products.

More than two out of five (44%) are worried about service standards at providers while one in four (25%) are not convinced providers will have the capacity to process business efficiently.

The study also revealed growing concern about the potential impact of the General Election on pension flexibility – around 56% of advisers say they are worried about a change of Government and the impact on the new rules.

Dominic Grinstead, Managing Director, MetLife UK, said:

“The role of advisers has been massively enhanced by the pension changes and they will be crucial to the success of pension flexibility.”

“Advisers and providers must work together to ensure that those who are at or near retirement get the best and most appropriate support in the new pensions landscape which includes focusing on service and customers.”