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Hargreaves Lansdown unveils flat-fee retirement planning service


Hargreaves Lansdown has launched a new low-cost retirement planning service in response to the pension freedoms.

The firm is offering a flat fee service for £395, which covers an hour with an adviser as well as a report on key issues for the investor to cover.

It also includes a cashflow projection to show how asset positions are affected by drawing their desired level of income.

However, Hargreaves says the service stops short of providing specific, personal recommendations.

Should investors wish to move from the retirement planning service into full advice, their fees will then be deducted from the extra costs.

Hargreaves charges 2 per cent for full advice on the first £200,000, then 1 per cent of the balance from £200,000 to £1m, and 0.5 per cent of the balance over £1m.

Hargreaves Lansdown head of pensions research Head of pensions research Tom McPhail says: “We think there is a demand for a transactional service and straight forward service that sits somewhere in between the excellent work of Pension Wise and a full personalised advice serve that will typically cost upwards of £1,000.

“Pension Wise is fantastic, and I think take up needs to be improved but even if we get 100 per cent coverage there are elements of customer needs that it cant satisfy.

“It can’t take people on to the point of transaction. They can talk around what products are out there, but it can’t take people any further than that. A lot of investors don’t want a full on adviser service, but they want to be talked through the process.”

Hargreaves estimates market demand of 120,000 investors a year for the service, having a completed a survey of 300 over 55s which found 65 per cent would value talking through their retirement with an expert.

And while 28 per cent said they wouldn’t be interested in paying for the service, more than 50 per cent said they would pay between £100 and £499.



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There are 11 comments at the moment, we would love to hear your opinion too.

  1. So the headline is incorrect then. It is not Advice at all, just an information service like Google but for £395.00 and is it plus VAT? That would make it £474.00.

  2. £395 for what many advisers will do free of charge, hardly worth the headline

  3. So normally HL would charge someone with a portfolio of £2million £17,000 for providing advice…
    Hour with an adviser £395 – is that VAT inclusive?

  4. Pension Wise with an cash flow spread sheet on the end for £500 inc VAT

  5. And then if you are advised to invest in the HL funds it appears you also have a 5% spread between buy and sell prices – so 7% initial cost ??

  6. Chris 23rd June 2015 at 3:37 pm

    Not even simplified advice!

  7. … this is precisely why I keep banging on about disclosure. There are too many things out there which potentially lead consumers to think they are receiving regulated advice when the opposite is the case.

    The statement “We think there is a demand for a transactional service and straight forward service that sits somewhere in between the excellent work of Pension Wise and a full personalised advice serve that will typically cost upwards of £1,000″ to me implies that it sits between non advice and ‘full advice’ – ergo ‘simplified advice’. Whereas in reality it’s still non-advice. So, yes, it perhaps sits between them but certainly not in the middle’.

  8. William Burrows 24th June 2015 at 9:32 am

    We talk about no-advice, simplified advice, transactional service and full advice.

    This ‘double Dutch’ to most people what they want is a service that they can trust, is good value and that’s helps them get the best outcomes.

    Can you name other areas where it is so difficult for people get the service they want?

    Decisions at retirement are serious stuff but my making it so complicated for people we are denying them the opportunity to make the best decisions for their circumstances.

  9. £395 an hour, nice work if you can get it!

  10. 1.2% on a £1m fund – that’s gotta hurt

  11. Jeremy Mugridge 29th June 2015 at 11:16 am

    Surely any ‘advice gaps’ in pension information can be plugged by digital? Interactive technology like mobile apps and online calculators could quickly help customers to understand the baffling array of fund choices, income decisions and predict how factors such as past fund performance and inflation will affect pension pots come retirement. Right now information offered by providers is often overly complicated, static and often out of date. But 35 million people in the UK own a smartphone and customers would be better informed – before they sit with financial advisors – if they could quickly get a sense of how their hard-earned pension savings might perform.

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