Defaqto names Royal London as advisers’ preferred pension provider

Hannah Godfrey reports...

Royal London has emerged as the preferred provider among financial advisers in Defaqto’s annual review of the service delivered by pension providers.

The survey, which canvassed 485 advisers from June to September in 2018, measured how satisfied advisers were with their pension providers.

A total 19 providers received sufficient nominations as preferred providers to be included in the survey. Defaqto’s research found Royal London and Aviva were the most used providers, with more than half of the advisers surveyed using both of the life giants in the past 12 months.

At the other end of the scale, Ascentric and Talbot and Muir were the least used, with fewer than 10% of respondents working with them in the last year.

The survey then examined which providers and administrators were preferred by advisers (see below graph). Royal London dominated among the providers, nominated as a preferred provider by nearly 40% of respondents. Retirement Advantage and Wealthtime fared worse, nominated by around 3% each.

Defaqto said the results illustrated which providers were, in general terms, offering the most satisfactory service to the adviser community.

Preferred providers

Source: Defaqto Pension Service Review 2019

Annuities least recommended product

Elsewhere, advisers ranked pension freedom servicing as the most important aspect of the services providers offer, with product and proposition coming in second.

Parmenion, Talbot & Muir and Wealthtime were considered the best performing providers for pension and freedom servicing, while LV=, Parmenion, Retirement Advantage, Talbot & Muir, Transact, Wealthtime and Zurich were ranked top for product and proposition.

Personal pensions, drawdown and self-invested personal pensions were the most recommended types of pension product, while annuities were the least.

Defaqto head of insight and consulting for wealth and protection David Cartwright said overall satisfaction levels were largely unchanged from the previous year, adding: “There is still work for providers to do in some of the service categories when it comes to bridging the gaps between service and expectations.”