• But nearly nine out of 10 IFAs want more training on the products.
More than seven out of 10 IFAs (71%) expect to sell more ‘third way’ products going forwards, according to research* by threesixty, the IFA services provider.
Third way products offer an alternative to traditional and drawdown annuities by enabling a client to remain invested while enjoying guarantees on the capital or income. While such products are sold extensively in the United States, the market is still very much at an early stage in the UK, with only 8% of ‘at retirement’ cases going to third way, while 32% go to drawdown, the research shows. Nearly all (99.6%) of IFAs say they consider enhanced annuities for their clients.
The research also reveals a major education gap in relation to third way in that nearly nine out of 10 (88%) of IFAs say they want more training on the products. threesixty has responded to this demand for more information about third way products by staging a series of seminars around the country for its clients over the last month. but it is still concerned that the market as a whole remains largely under-informed.
David Ingram, Partner at threesixty, commented: “Third way products take the retirement market into a whole new dimension but there is still a long way to go before the market for them reaches its full potential. Our research shows that there is a wide knowledge gap among IFAs that needs to be closed and while some providers have risen to the challenge, it would be good to see more effort made by providers in helping IFAs understand more about this new breed of product.”
*Research carried out among 237 IFAs who attended threesixty key issues seminars in October 2008.