A recent survey from the Association of Independent Financial Advisers has found that 81% of IFA's have advised at least some of their clients to contract back in to the Second State Pension. Seventy per cent have said that they have advised most of their clients to contract back in, but only half of advisers are advising new clients about the S2P.
Aifa have said that contracting out is a complex issue, and advisers are nervous about advising on it. Over half prefer to talk the client through the pro's and cons, allowing the clients to make the final decision themselves. Many advisers no longer offer firm advice on contracting out, fearing that any future change in government policy could leave them liable for advice given on the basis of the current situation.
Our view
Who would offer advice on such a 'hot potato' when the Government will no doubt change its mind again in a few years?