23 March 2010 – Publication of DWP research report 642: Delivering information on pensions: the role of intermediaries

Research published today by the Department for Work and Pensions explores the advisory role of intermediaries in providing formal and informal advice on pensions to employers. The research examined the information requirements needed by intermediaries to enable them to adequately support employers in relation to current pension related information and the forthcoming workplace pension reforms.

Key findings from the research were:

• Successful relationships between intermediaries and employers were based on four key factors: The intermediaries’ reputation; the rapport the intermediary had with the employer; the intermediary’s ability to demonstrate they were client-focused and; the employers’ perception of the intermediaries’ integrity.
• Intermediaries perceived they had greater influence with small and micro employers as these employers were less likely to be able to draw on pensions expertise from within their own company.
• Intermediaries tended to be proactively initiate contact in relation to legislative changes, whereas employers tended to initiate contact to discuss ad hoc queries relating to the business.
• Intermediaries perceived web-based channels as the most effective method to source information. DWP, HM Revenue & Customs, The Pensions Regulator and Personal Accounts Delivery Authority websites were used regularly by intermediaries and there was no anticipation that these preferred sources would change in the run up to the reforms.
• Non-web-based channels, such as the industry press and networking with colleagues, were also regarded as important sources of information.
• Intermediaries’ awareness of the 2012 reforms was good. However, levels of knowledge and understanding were greater among those intermediaries working with medium and large employers.
• Intermediaries felt they would need between six months and three years to prepare themselves and employers for the reforms, with larger employers likely to need more time.  However, on the whole, comprehensive information at least one year before implementation of the reforms should provide sufficient time to prepare employers.

Notes to Editors:

• DWP Research Report No 642 – “Delivering Information on Pensions: The Role of Intermediaries” is published today, 23rd March, by DWP.
• The research was conducted on behalf of DWP by BMRB. The report authors are Andrew Thomas, Richard Stockley and Ben Hewitson.
• The report and summary are available free on the DWP website http://research.dwp.gov.uk/asd/asd5/rrs-index.asp
• The report is based on 50 face-to-face, qualitative depth interviews conducted with a range of intermediaries including accountants, actuaries, independent financial advisors (IFA), lawyers and pension consultants. 

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