The ‘value for money’ provided by private pensions is a key concern of financial advisers, analysis from researchers at Defaqto have said.
According to the firm’s Retirement Savings and Income Report 2009, value is the most important of 39 separate Satisfaction Disciplines rated and ranked by the nation’s advisers.
Last year, the issue ranked third on the list.
However, the credit crunch and recession – which has led to severe volatility on the global financial markets and swelling deficits among many pension schemes – appears to have led many of the professionals to prioritise value.
Matt Ward, Defaqto’s wealth management consultant, said: "In chastening financial times it seems somewhat inevitable that [advisers] and their clients should be seeking value for money in the products and services that they buy into."
He added: "Although this doesn’t signify that cheapest is necessarily best, there will be an inevitable downward pressure felt by providers on charging levels during 2010."
Equity release plans, which provide a non-pensions-based income solution, appear to have increased in popularity as the recession has continued.
Figures from Key Retirement Solutions have shown quarter-on-quarter growth in plan sales throughout 2009.
Posted by Tom Papworth
