Personal pensions the individual pension product IFAs sell most

A survey by independent financial research company Defaqto has found that personal pensions remain the most sold pension product among IFAs who deal in individual pension products.

Of 500 IFAs questioned, 77% said they sell personal pensions the most.

To help IFAs in this area of advice, Defaqto has published a free review highlighting the key issues and planning considerations relating to personal pensions.

The review discusses some of the key issues impacting on the personal pension industry, details the current product market for IFAs and outlines key trends and emerging themes.

In particular, the review covers:

The product due diligence process
Suitability appraisal from a client and an IFA perspective
The typical terms and features of personal pensions, and associated considerations

Matt Ward, Defaqto's Wealth Management Consultant, said: "Despite challenges from stakeholder pensions and SIPPs over the past ten years, personal pensions remain a key retirement saving and consolidation vehicle for IFAs and their clients. However, as with many product markets at present, IFAs advising on personal pensions face a number of legislative and regulatory pressures.

"It is important that advisers keep abreast of the key issues impacting on personal pensions, and ensure that they research and select product partners whose propositions can meet the needs of both the end client and their business. From an RDR perspective, IFAs should seek to work with partners who are designing clear remuneration structures for their products, which facilitate the payment of fees and enable the type of ‘up-front' remuneration that will be required from 2013."