2 June 2006
New research just published by Winterthur Life found that of the UK’s top tier advisers surveyed over 75% expect to see their business grow in the next six months due to the impact of A-Day.
Almost 60% of advisers expect to see their business grow by up to 25% and a further 18% expect their business to grow by more than 25%. The most popular reason given for this expected growth is interest in EPPs, tax free cash changes and SIPPs.
More than seven in 10 expect the removal of the need to buy an annuity to be a ‘significant’ benefit to their typical pension clients. Almost six in 10 feel Income Drawdown changes will be of ‘significant’ benefit.
Since A-Day 53% of advisers say they have already seen enquiries rise.
Further, a third of advisers feel the IHT impact of tax on trusts will have a ‘very detrimental effect’ on their typical pension clients, with roughly half feeling it will have a ‘fairly detrimental’ effect. This underlines the importance of independent financial advice.
449 leading advisers took part in the research at the Winterthur Life A-Day Opportunities workshops held across the country during May and June 2006.
David Thompson, director of distribution, Winterthur Life UK, says: “The research findings underline how successful A-Day has been so far in regenerating interest in saving for retirement. More flexibility around buying annuities, wider access to tax-free lump sums, concurrent pensions plans and much higher contribution limits have all it seems proved very attractive to a great many consumers.
“The findings also support Winterthur’s own positive experience around A-Day. Pension sales grew strongly this year – up 54% on the first quarter last year - as advisers prepared for the new rules. Since A-Day the momentum has continued, with requests for quotes and new business up over 110% on May last year. In particular we have seen strong interest in EPPs and Section 32s, Protected Rights, USP and ASP.“
For further information: Paul Riddell Winterthur Life, Press Office +44 (0)1256 798099
Sandra Fulton Winterthur Life, Press Office +44 (0)1256 798310
Christine Wood Financial Dynamics +44 (0) 20 7269 7253
Notes to Editors
About Winterthur Life UK Limited
Winterthur Life UK Limited is part of Winterthur Group, a leading Swiss insurance company with its international headquarters in Winterthur, Switzerland.
Winterthur Life UK offers pensions and investments for high net worth clients distributed via top tier IFAs and is renowned for its innovative approach to financial products. Its philosophy of transparent product propositions offers advisers a range of retirement and investment solutions with an open charging structure.
Winterthur Life UK is one of the UK’s top 10 providers of single premium personal pensions, trustee investment plans and corporate pensions via IFAs and a leading provider of self-investment retirement plans like Self Invested Personal Pensions (“Sipps”).
Any opinions expressed in this media communication are made as at the date of publication but are subject to change without notice. Past performance is not a guide to the future. The value of shares/units and the income from them can go down as well as up. Exchange rate fluctuations may cause the value of underlying investments to fall as well as rise. Yields are not guaranteed and may fall or rise.
Winterthur Life UK Limited is authorised and regulated by the Financial Services Authority.
www.winterthur-ifa.co.uk
Winterthur Group
Winterthur Group is a leading Swiss insurance company with head office in Winterthur. As an international company, the Group provides a broad range of personal, property and casualty insurance products, as well as insurance solutions in life and pensions that are tailored to the individual needs of private and corporate clients. Winterthur Group has approximately 19,000 employees worldwide. The company achieved a total business volume of CHF 28.3 billion in 2005 and reported assets under management of CHF 153.3 billion as of December 31, 2005.
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