Standard Life sees personal pensions sales increase 60%

Standard Life’s Irish business saw its sales of personal pensions increase by almost 60% in the first half of the year.

The life assurance specialists’ improved pension sales, coupled with strong underlying investment growth, contributed to a substantial increase in its assets in the opening six months of this year.

Standard Life head of marketing, Brendan Barr attributed the rise in pension sales to a pick-up in consumer confidence.

“Increased consumer confidence helps explain a 59% increase in sales of personal pensions. Consumers find it easier to plan for the future when they have more financial confidence,” said Mr Barr.

The firm’s total assets grew from €6.8bn to more than €7.4bn in the six- month period.

Investment bond sales also rose substantially, by 26%, in the period.

The erosion of savers’ earning power as a result of cuts by banks and the ECB to deposit interest rates in recent months, has contributed to the increased demand for investment bonds, according to Mr Barr.

“Investment bond sales also increased sharply as the near-zero deposit rate is encouraging customers to move long-term money away from deposits into investments,” said Mr Barr.

Customers are also primarily choosing to invest their money in multi-asset portfolios in an attempt to diversify their investments, according to the life assurance company.

The group’s half-year results show that it now has £254bn (€320bn) worth of assets under control and pre-tax operating profits of £339m; an increase of 12%.

“Standard Life has continued to perform well in the first half of 2014, driven by our focus on delivering value for money for all of our customers. We have increased revenues, profits and cash, and now have assets under administration of £254bn,” said chief executive, David Nish.