UK IFAs Predict Pension Reforms Will Be Necessary

by Robin Pilgrim, LawAndTax-News.com, London

12 January 2005

According to a recent survey of UK independent financial advisers (IFAs), conducted by Richmond Events during its PIMS forum for the financial services industry, the majority of advisers feel that reforms are likely to be necessary in order to bridge the pension savings gap.

The poll revealed that most IFAs questioned felt that obliging UK workers to delay retirement, increasing tax incentives for pension savings, and implementing a forced retirement savings regime are all avenues which will be considered by the government in addressing the shortfall.

Questioned with regard to the future for the financial advisory industry, most of the 69 respondents felt that they will be able to grow their businesses in the next year or two.

Nearly a third revealed that the value of their businesses has gone up in the past year, which compares favourably with the less than one-in-seven who felt the same this time last year.

According to IFAonline.com, which reported on the survey results, participants were almost evenly split over whether fees will take over from commission, and were generally cautious about the hedge fund and equity release sectors.

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