Pension specialist Alliance Trust Savings argues that although independent financial advisers (IFAs) were deserting Small Self-Administered Schemes (SSAS) in favour of Self-Invested Personal Pensions (SIPPs) after A-Day, the product is still competitive.
Alliance Trust says that the changes brought in with A-Day in April have shifted the focus of IFAs towards SIPPs because they are now more high profile and easier to manage as they are tailored for the individual rather than part of a larger scheme.
However, Alliance Trust argues that a client's SSAS should not be wound up and replaced by a SIPP as a matter of course.
"IFAs might think the SSAS is dead and buried post A-Day, but this is not the case," says Ian Dawson, head of business development at Alliance Trust Savings.
"Although there are similarities, there are enough differences for the SSAS to work out more cost effective and more suitable for some clients.
"Advisers should not confuse slipping SSAS service standards with unsuitability of the product itself," Mr Dawson continued. "The priorities of some administrators are shifting and we're concerned that some appear to have let customer support dip for their SSAS clients."To read more about pensions, click here.
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