Are you missing out? Segmenting your pensions business
– a practical solution to support your business through this transition
All clients are different – so a "one size fits all" approach to the service you provide isn't sustainable in the current pension environment. Segmenting your pensions business could be the answer.
The regulatory requirements of TCF, the recent industry activity around the Retail Distribution Review and the thematic review of pensions switching have all placed greater emphasis on the work you are required to undertake for each client.
These initiatives have highlighted two key requirements:
- the importance of the suitability of the initial advice and
- the need to provide an ongoing service to all your clients through regular reviews.
Wrap is one solution but it's unlikely to be cost effective for all your clients.
Scottish Life believes that wraps are only suitable for those clients that take an active role in investing their funds and have substantial amounts of money. This is because of the high level of contact that you need to have with them.
What about the rest of your clients? Can you afford to service all of them in the same way?
Can all your clients afford all your services?
It's crucial to offer each client the right service model at the right price.
Divide your pensions business
Segmenting your pension business and service levels can help to create a profitable business model which satisfies your regulatory requirements. But you may have to completely change your existing business practises. You should however, ensure that any segmentation strategy you adopt and the services and recommendations you make take into account your individual client's requirements and adheres to your own compliance requirements.
Scottish Life's Governed Range
We believe we have the perfect solution for those clients that can't afford a 'platinum' service with bespoke investment portfolios and regular, face-to-face reviews.
The Governed Range is made up of a number of risk-graded Governed Portfolios and Lifestyle Strategies which aim to help you ensure the ongoing suitability of investments for any client.
This allows you to focus your time on the clients that add the most value to your business without the worry that you are not meeting the regulatory requirements of your other clients.
The range is available as part of our standard offering with no extra cost to you or your client through our flagship individual pension – Pension Portfolio. Its 3 in 1 structure combines a competitively priced personal pension, a range of additional self investment options and drawdown functionality – creating a flexible product that evolves and adapts with your clients' needs and lifestyles as they approach retirement.
Our Pension Portfolio and the Governed Range is not just the solution, it's an opportunity to add value to your business.
With our Pension Portfolio you get
- 5 star customer servicei
- a product that helps you provide a compliant service
- a complete lifetime solution for your clients
- competitive charges and flexible remuneration.
We've trebled our personal pension market share over the last two years by delivering what matters most to advisers like you.ii
To discuss the benefits of segmenting your business and how Scottish Life can help, please contact your usual Scottish Life representative.
Post new comment