Provider division ‘killing off GPPs’

Providers who conspired against commission in the group pension market will come to regret their decision, advisers are warning.

Advisers say the divided nature of the group pensions market, split between providers who support the commission model and those who do not, has made it easy for the regulator to kill off commission through the RDR. But they also warn that those who have attacked commission will gain nothing from the position they have taken.

The changes proposed by the RDR will also lead to some employers not bothering with pensions says Michael Whitfield, chief executive of Thomsons Online Benefits. He argues that come 2013 those who will never face a fee will be left with the basic, untested and limited option of personal accounts, which is not yet even in existence.