Standard Life has launched an affordable pension advice service to address the advice gap.
Standard Life Financial Advice is aimed at customers who typically shy away from paid advice to support them in their retirement decisions, such as how to structure their retirement income, the level of investment risk they should take in retirement and how to take tax-free cash from their pension.
Customers will be offered tailored financial advice for a one-off fee of £1,000, with an optional annual review available at £500 per session.
The new advice service launches with 10 advisers with scope to expand the team according to demand.
Existing Standard Life customers aged 54 years and nine months upwards with a minimum of £50,000 saved in a Defined Contribution (DC) pension pot will be the first to access the retirement advice service.
Damian Cheater, CEO, Standard Life Financial Advice Services, said that with the increased complexity of pension freedoms as well as people living longer, the responsibility for making the right financial choices has shifted heavily onto individuals, causing many to feel overwhelmed.
“With the onus increasingly on individuals to manage their retirement savings and less than 10% of people receiving financial advice, it’s clear that advice is currently out of reach for many, either due to cost or a feeling that they don’t have enough saved to consider having an adviser,” he said.
“We have designed our service to make advice more accessible compared to some traditional financial advice models. We believe that having a single flat fee will prove attractive and help introduce more people to planning financially for their retirement.”
Andy Briggs, CEO of Standard Life parent, Phoenix Group, added: “This is a significant milestone for our retail business and our desire to serve the needs of customers.
“We are opening up the world of advice to many for whom this was previously not an option, to help them better prepare for their retirement and make the most of their hard-earned savings to and through retirement.”
