How much can IFFP save you?

Rice Warner Actuaries recently released an independent report comparing the cost and value of advice from IFFP against that of commission based advisers.

Results:

The findings revealed that the estimated cost of advice from a commission remunerated adviser was to be between 2 and 13 times higher than the remuneration charged by a fee-for-service planner from IFFP over the same period.

Financial advice from IFFP was also found to deliver up to 6 times better net value than commission based advice, which shows that IFFP provides good returns and lower cost compared to commission based planners.

The report modelled 5 real life examples:

• Insurance strategy
• Transition to Retirement (TTR)
• Co-Contribution
• Retirement Planning
• Salary Sacrifice

In one scenario, the cost of advice from a retail commission remunerated adviser was up to 13 times higher than similar advice from an IFFP planner. Not only does financial advice cost less when clients pay fee-for-service, but the products recommended from IFFP also cost less resulting in greater net value of advice.