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Advisers to lose £80m say Standard Life
Standard Life, which bases its estimates on HMRC date, has said that financial advisers will lose out on an estimated £80m worth of commission when the government outlaws contracting out of the state pension.
Last year, the government passed legislation to ban contracting-out into defined contribution pensions, starting in April.
Standard Life said the move means around £2bn per year will no longer be paid into private pensions from state pensions.
John Lawson, Standard Life head of pensions policy, said:
“IFAs will be able to replace the income stream if clients increase their private pension contributions.
"After 30 years of work, you can argue to clients that they get no extra benefit by paying into the state system, so they may wish to increase the amount they pay into their private pension scheme."
For more information please contact Paul Bradshaw at McEwan Wallace Wealth Management on 0151 647 6682 or email enquiries@wallace.co.uk.
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- Advisers to lose £80m say Standard Life
