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The People’s Pension offers £49 robo-advice in LV= tie-up

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Members of The People’s Pension are to be offered a personalised recommendation for £49 as part of a tie-up with LV=.

The automatic enrolment provider has signed a deal with the mutual which will provide 2.3 million scheme members with access to low-cost online advice.

Direct customers are normally charged £199 to produce online retirement income recommendations, which could include taking no action, buying an annuity, entering drawdown or a variety of products.

There is an additional £499 fee for executing the recommendations.

However, B&CE customers – including members of the firm’s EasyBuild scheme – will pay just £49 for a personalised recommendation. They will also receive a report setting out four options for their pot, including a projection on how long their savings will last.

There is no discount on the £499 execution fee.

A YouGov survey of 2,080 people commissioned by B&CE shows just 18 percent of the public currently use a financial adviser while a quarter (25 per cent) said they would pay “a reasonable fee” to use an online retirement planning advice service.

The People’s Pension director of business development Roy Porter says: “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.

“That’s why we’re really excited to be working with LV= to launch these new options for our members. The free guidance report should help savers assess their options, and at just £49 for detailed online retirement advice, this brings an additional affordable choice for our members to help them obtain a good outcome from their retirement savings.”

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Comments

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

  1. So is it guidance, like the PP cha says. or advice as stated in your headline?

  2. Hi Paul, TPP say members will have access to a free guidance report (with the 4 options) and a £49 advice service (with personal recommendation) if they want to take it

  3. Where issues arise is if the advice is ‘limited’ and that limitation is detrimental to the client. For example, if the limitation results in the advice being ‘tied’ to a providers annuity contract. Ergo, the ‘advice’ is simply joint, MPG, escalation rather than a whole plethora of potential options.

    I simply cannot see how anyone can offer regulated, independent and unrestricted advice for £49 and cover their costs. In fact, I can not see how any form of advice can be delivered for £49. Robo or otherwise.

    Furthermore, if everyone takes the advice but then doesn’t transact (perhaps dealing direct) LV are doing virtually all the work for £49 and missing out on the £500. Where does that sit with sustainability?

    I’m all for cost effectiveness and client choice – but this feels much more like trying to do one thing and calling it something else.

  4. So its not actually £49 unless you ignore the ‘advice’. If you take the ‘advice’ it is £548. I would be interested to see the format of the report; Fact Find details, Risk Profiler/Assessment, Research details, plans/charges for regular financial reviews after the advice has been accepted.

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