Challenger and Colonial First State are the dominant brands in the post-retirement market and advisers prefer security over innovation, a survey has found.
Challenger and Colonial First State (CFS) are among the leading brands in the retirement income market, according to research from Marketing Pulse.
The survey, commissioned by Challenger, included three components of brand research that looked at strength of brand, brand by peer group and what advisers wanted from retirement products.
Challenger and CFS both scored 15 per cent of the vote from 160 planners. MLC garnered 13 per cent, ING received 11 per cent and Axa picked up 8 per cent.
While brand ownership of product categories in financial services is not as prevalent in consumer goods, in some financial products categories the dominant firms can receive 30 to 50 per cent of an unprompted first-to mind vote, according to Market Pulse director Michael Young.
Challenger, CFS and ING, however, polled strongly when advisers were shown a list of brands and were asked who the leaders in the retirement market were.
Around 64 per cent and 62 per cent of advisers agreed that Challenger and CFS were the leaders in providing retirement income products, with ING scoring 54 per cent. MLC and Axa received 53 per cent and 50 per cent, respectively.
"Given that Challenger's only retirement income product is annuities, it seems that annuities are most often regarded by planners as retirement income products," the Marketing Pulse report said.
The survey also found planners attributed little value to innovation in retirement products, with security and reliability being the most important product features.
"With planners wanting good value, simple products, it can be expected that a large educational and promotional effect will be needed by those providers taking to market the more complex, feature-rich, structured longevity products," Challenger head of marketing Stuart Barton said.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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