Pensions top demand

Friday 03 January 1997 19:02 EST
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Personal pensions will once again be the hottest financial products in 1997, according to independent financial advisers polled by Close Fund Management.

More than 40 per cent tipped personal pensions, compared with 45 per cent in 1996. Just19 per cent fancied PEPS might be the top product in demand.

PEPS could come into their own presumably if a rush develops to buy before the end of the current tax year, and again at the start of the next tax year by investors who fear that an incoming Labour government could put a ceiling on the total amount of tax-free assets an investors could accumulate.

Guaranteed products came in equal second most popular product, also winning 19 per cent of the vote. Healthcare and critical illness products won 15 per cent of the vote.

Around 4 per cent of the IFAs tipped income drawdown products as the most popular product this year, down from 6 per cent last year.

The election is their clients' main concern in 1997, according to 30 per cent of IFAs, followed by the possible volatility of the stock market.

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