B&CE, which also offers construction industry scheme EasyBuild, will be offering an online planning service to meet demand from UK savers currently not seeking financial advice.
From next month, the 2.3 million members of The People’s Pension and EasyBuild schemes can access free guidance outlining four possible options for their pot and how long it may last, plus a personalised online retirement advice service for £49.
The service will offer introductions to more traditional financial advice but those opting not to pursue them will still be able to use the online tools.
A fifth seeking advice
The launch follows recently published YouGov research on behalf of The People’s Pension, which revealed only 18% of the general public currently use a financial adviser.
Roy Porter, director of business development for The People’s Pension, said: “Our research suggests that a lot of people are not taking advice at the moment. Whether that’s because of cost, lack of awareness or fear, it’s creating a big guidance and advice gap, which needs to be filled.”
Of those with a pension, 30% would prefer to use online tools for financial advice than speak to a financial adviser.
Interest in online planning
The survey also found that half (53%) of those with a pension would use a free online retirement planning tool to explore their options in retirement and a further 25% would pay a “reasonable” fee for online retirement planning advice services from a product provider.
John Perks, managing director of retirement solutions at LV= said: “We’ve found that nearly half a million people retire each year without taking advice, meaning they could be losing out. At present there is a lack of affordable, accessible, quality advice but LV= has been at the forefront of finding innovative ways to make it easier for people to take advice.”
