(UBS Pensions series 21) Stopping short? Evidence on contributions to long-term savings from aggregate and micro data
AbstractWith a move away from up-front charges following the introduction of stakeholder pensions, consumers are no longer penalised for lapsing on many long-term savings policies. Nevertheless, persistency rates may still provide an (imperfect) indicator of sales quality and provide some information on how consumers are building up savings for the longer-term. Furthermore, persistency is an increasingly important issue for financial providers and the profitability of stakeholder-friendly products. This paper uses aggregate persistency data and survey data from the British Household Panel Survey to address three key questions: What drives persistency rates among different groups in the population? To what extent does non-persistency appear to reflect poor sales and advice, rather than events in consumers’ lives that were not predictable at the time of sale? Are there any messages that could be given to the industry or to consumers to help raise levels of persistency?
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Financial Markets Group in its series FMG Discussion Papers with number dp485.
Date of creation: Mar 2004
Date of revision:
Contact details of provider:
Web page: http://www.lse.ac.uk/fmg/
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (The FMG Administration).
If references are entirely missing, you can add them using this form.