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30% willing to pay for pension advice

Savers are more willing to pay a financial adviser for help with their pensions than any other area, a Scottish Widows report into workplace savings has revealed.

According to the study, published today, 30 per cent of people say they would be happy to pay for pensions advice, more than mortgages (24 per cent), cash Isas (17 per cent) and property (12 per cent).

Of those who already pay for advice, 38 per cent have discussed pensions with their adviser, the study found. Nearly half, 48 per cent, say guidance guarantee official partners TPAS and MAS are their first port of call for help with their pensions.

Scottish Widows says the Government should develop a retirement passport including “an agreed set of relevant retirement information – such as pension policy information, family circumstances, basic health information and retirement aspirations”.

“This could speed up the guidance process and reduce the costs of the handover to regulated financial advice: or indeed be the enrty point into a new lower cost focused or simplified advice route.” the provider adds.

The report, which surveyed over 5,000 adults, also found that auto-enrolment has boosted the number of people saving “adequately” for retirement to 53 per cent, the highest for five years, and up from 45 per cent last year.

Scottish Widows head of corporate pensions business development Lynn Graves says: “Auto-enrolment is designed to help shore-up the financial futures of groups that may not be in such a strong position to prepare adequately for retirement on their own – particularly lower income groups and younger people who are yet to establish the savings habit.

”In this respect, this year’s results are extremely encouraging as the reform is more widely understood and welcomed by these groups as it rolls out to a wider cohort of employees”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. That leaves 70% who will not and they are the ones who will probably need the advice.

  2. Those who receive the proposed guidance service will either believe what they received was advice (even if they are told it is not) or will not be willing to pay for advice because their pension pot is so small. 85% less than £50k in 2012 according to LV=

    The guidance service should be driven by product providers issuing a prescribed information pack to those coming up to retirement and sign post the need for advice. This then will save the £50m per year that is going to levied on the financial services sector and handed over to MAS and TPAS

  3. Willing to pay, but what do they call a ‘fair price’ I wonder? £100? £150?….!

  4. 85% less than 50k and 65% less than 20K I seem to remember – with an overall average of 18k.

    Why would anyone with a pot in the ‘teens’ pay for advice? Of course MAS and TPAS are right for these people – they’re ‘free’.

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