The industry must remove barriers to saving and investing so that consumers can make informed decisions about their long-term savings, Mike Kellard has said.
The chief executive officer of Axa Wealth said he welcomed the recent Budget revelations mean that consumers have more freedom than ever before when it comes to taking control of their long-term savings.
However, he warned that this freedom had to be matched by an industry “willing to make changes so that informed decisions can be made”.
Mr Kellard said: “For too long our industry has made it hard for people to invest, through jargon and lack of transparency; saying that consumers need to be educated, that they need to take control and take action.
“Investing must be made more straightforward. With the expectation that consumers will want to consolidate their savings, barriers such as exit fees and switching fees should be removed. Transparency has to be at the forefront of pricing and charging structures.
“Choice and flexibility will be key for product development with a focus on adaptability to meet the varying needs of consumers’ life stages.”
Mr Kellard added that the way in which the industry services these customers will have to change, reflecting the manner in which many people make purchasing decisions nowadays.
He said: “Our research suggests that while many consumers feel comfortable making choices such as committing to mobile phone contracts, buying a car, getting value for money through their energy providers.
“This confidence is lost when it comes to investing. This cannot simply be put down to investments being ‘different’. A lack of consumer comfort and engagement with buying investment products is a concern and is something the industry, not just the consumer, has to deal with head on.”
Mr Kellard warned that the industry has an opportunity now to “engage and enthuse the public into believing we have something to offer”.
With the new Isa limits of 15,000 per person, access to their entire pension pot at retirement after April 2015 and transparency of cost through products and services, he added: “We have never had a better opportunity”.
