Posted by Sarah on Thursday, 24 May 2012 at 10:48:29
Filed under: Annuities, Sesame Bankhall Group
Sesame and Bankhall members now have access to a new referral service for small annuities that provides a solution to the growing problem of how advisers cost effectively service clients with small pension pots of less than £40,000.
Advisers can opt to refer their annuity business to Gateway Specialist Advice Services, whose team of specialists will consult with the adviser and their client with a view to writing the business on their behalf. Gateway will review the client’s circumstances, discuss the most appropriate shape for their annuity and then provide a personal recommendation. The adviser will also receive an introduction fee, whilst Gateway will take full regulatory and professional indemnity responsibility.
The service has been designed to cater for a market that is forecast to more than double over the next decade, from £14bn in 2008 to £32bn by 2018. The majority of this growth is forecast to come from funds under £40,000, which currently account for 80% of the market.
Across the whole market, only a third of people shop around for the best annuity rate on retirement, despite a difference of up to 30% on the best and worst rates available. An annuity can potentially be enhanced further if the client suffers from an impaired health condition. Research from Partnership shows that 40% of the population could qualify for enhanced annuities, however only 10% of all annuities sold in the UK are enhanced.
For enhanced annuity cases, using a simple set of medical-related questions, Gateway provides fully underwritten enhanced annuity quotations from Partnership using fast, intelligent underwriting specifically designed for small cases. If this quotation is accepted, it will then progress to an on-line application managed by Gateway.
Stephen Young, Chief Operating Officer for Sesame Bankhall Group, said: “Independent advice remains the gold standard, but our profession has to face up to the dilemma of how we service all clients cost effectively. To undertake a full advice process on small annuities can mean that advisers are actually losing money on some cases. This will be brought into sharper focus as advisers review their client proposition and we move to the new RDR world of adviser charging. Gateway’s referral service is the shape of things to come. It enables advisers to continue to service their clients and add value by boosting their income in retirement, but in a way that is sustainable for the firm.
“We are also pleased to be able to offer Partnership’s new online enhanced annuity solution. It is good to see product providers investing in this area of the market, which is set to grow significantly over the next decade. We expect to see increased demand from people looking for expert financial guidance, and advisers are ideally placed to offer a range of valuable services and open up additional income streams in the future.”
Commenting on the launch, Mike Preston, Head of Gateway Specialist Advice Services, said: “Demand for our services has grown as advisers appreciate how it can enhance their offering to clients whilst at the same time removing the administrative and liability burden. Our new service will provide annuity advice for many clients who previously would not have received it. It makes clients with small funds more lucrative for advisers, who can now provide appropriate, inexpensive advice without the associated costs. This allows them to remain focussed on other important business areas. Given the changing demographics in the UK and the expected growth in the at-retirement market, this simple, fast and effective process means advisers can demonstrate their commitment to TCF, whilst potentially opening up a range of future business opportunities.”
Advisers who would like further information can call Gateway on 0845 045 0150 or email enquiries@gatewaysas.co.uk
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Tags: annuity
Posted by Sarah on Thursday, 24 May 2012 at 10:47:57
Filed under: Advisers, Gateway Services, Sesame Bankhall Group
Gateway Specialist Advice Services provides an Introduction facility for Advisers associated with Sesame Bankhall Group, whether as a Network Member or Directly Authorised. Here we look at two firms; one Network and one Directly Authorised , who use Gateway and do so not because they couldn’t do the business themselves, but for very sound and considered commercial reasons...
Armstrong Watson
Paul Dickson, Partner at Directly Authorised Armstrong Watson has very specific reasons for using Gateway to support his team of 14 Advisers...”It’s simply a commercial decision” says Paul... We have a team of excellent advisers within Armstrong Watson and have all the specialist pension knowledge within our firm. Where we use Gateway therefore is in the small annuity proposition where funds are below £40,000 and Equity Release where our Team don’t have the regular experience of advising on it.”
“Our model doesn’t allow advisers to be in front of a client wanting advice on a fund under £40,000 – it simply isn’t affordable for us or the client, so we are delighted to direct these people to Gateway, ensuring they receive advice and potentially gain an increase in their income, whilst we avoid the costs associated with it.”
“For Equity Release, we have taken a decision that this is not ‘core’ to our business and by working with Gateway, we are able to use their expertise on the occasions we meet clients (or increasingly parents of clients) who require advice and guidance in this area”
“For both, we have a good relationship with Gateway and feel it adds value to our overall proposition without committing my advisers to potentially loss-making and time consuming activities”.
Visit the Armstrong Watson website
Dragonfly Financial Planning
Adam Young, MD of Dragonfly has used Gateway (and Sesame Solutions previously) over the last few years. Adam is the sole adviser within Dragonfly and he deals with his client bank of largely high net worth clients with a clear focus on the service that he provides. Adam explains his relationship with Gateway:
“My proposition is focused on Financial Planning and having a very clear service strategy for each of my clients. I see my value in being at the centre of the relationship and being able to use appropriate services as clients required. This not only means that I am able to see more clients, but also means that all risk associated with the business written is taken away from Dragonfly which commercially is significant.
Over the last few years I have developed my relationship with the Gateway Team in order to get the best possible result for my clients and ensure a sense of continuity in the service I provide for them. We use wraps for many of my clients and clearly this needs understanding and joined-up communications when I’m introducing any of them to Gateway in order to avoid any confusion.
Although this has its challenges at times as clearly Gateway are making the recommendations, I find that by having an effective relationship with the Team, we have a greater understanding of their approach and can work together to ensure a positive experience for the client”.
“I would encourage Advisers to include Gateway within their proposition”.
Visit the Dragonfly Financial Planning website
Contact Us
Advisers who would like further information can call Gateway on 0845 045 0150 or email enquiries@gatewaysas.co.uk
Tags: Armstrong Watson, Dragonfly Financial Planning
Posted by Sarah on Thursday, 24 May 2012 at 10:46:01
Filed under: Advisers, Equity Release, Gateway Services, Retirement Options
Talking To Your Clients About Equity Release
It has recently been reported that 20% of the UK population would consider using equity release in their retirement years, but only 5% have ever seen an IFA to discuss releasing equity from their property.
It has been reported by ERSA (Equity Release Solicitor's Alliance) that research has confirmed that 9.1 million people would use, or would be likely to use, equity release in the future, but it appears that financial advisers are just not talking to prospective clients enough about the subject.
Clients Are Not Saving Enough Towards Their Retirement
It was also reported that there was a significant gap between the amounts that clients were saving for retirement compared to the lifestyle they expected to fund after they reached retirement age. Even with clients now being more aware of the expectations by the Government that they should be taking more responsibility for funding their own retirement, 47% of clients are still saving nothing at all towards their retirement pot.
ERSA also reported that it was encouraging that equity release has been on the political agenda of late, as with a population that is ageing and changes to the UK pension system, it is more and more important that individuals look to funding their own pension income. Generally, the home is most people's major asset and therefore it is natural that equity release should be seen as an important part of retirement planning.
In some areas of the country IFAs have noticed a rise in the demand for information about equity release, particularly in areas where there are low incomes, poor levels of savings and lack of pension investment as these scenarios can all generate interest in equity release from clients.
Contact Gateway For More Information On Equity Release
If you want to find out more about equity release and how you can talk to your clients about releasing equity from their property please call the Gateway Equity Release Team on 0845 234 7630 or email enquiries@gatewaysas.co.uk.
Tags: equity release, pension funding, ERSA