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LibDem conference: Over-50s must receive face-to-face auto-enrolment advice

People over 50 being auto-enrolled into a pension should be given one hour of face-to-face advice due to the increased risk of misselling, according to Lord Oakeshott.

Speaking at a fringe event at the Liberal Democrat conference in Birmingham, the LibDem Peer said older savers must be given information on the interaction with state benefits, debt and scheme charges in the form of face-to-face advice.

He said: “There is a real danger of misselling under auto-enrolment That is slowly being helped by the move the new Government has made away from means testing towards a better state pension but that is going to take a long time which is why, in the House of Lords, I tabled an amendment to the pensions bill to say everyone over 50 should get at least an hour of face-to-face advice to see if auto-enrolment is right for them.”

He added: “Many people have credit card debt on which they are paying perhaps 18 per cent and your effective rate of return from a pension, even without means testing is unlikely to be more than more than 8 per cent.”

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. MAS look like they are going to be very busy!

  2. We are going around in circles again – the product is too complicated due to factors involved and yet there is no commission on the sale so the individuals will only get advice in the post-RDR world after Customer Agreed Remuneration is finalised with the adviser.

  3. WHO IS GOING TO PAY FOR IT !!

  4. MAS should be a good source of jobs for advisers who don’t get to QCF Level 4. Imagine it. A salary, pension, no compliance – just give guidance – get paid whatever.

    Quango job so bound to be worth a crack.

  5. Hold on – wasn’t it Lord Oakeshott who said that IFA’s days were numbered because people would find advice online and wouldn’t need to see anybody?

    Changed his tune a bit hasn’t he!

  6. Unbelievable

    Who in their right mind would give such advice be resonsible for it, be liable for a complaint and be paid nothing

  7. “should be GIVEN one hour” I am sure post RDR there won’t be a queue of IFA’s waiting to “give” an hour of their time to this.
    Is this hour, the time spent with the client or the 2 hours post the meeting writing a 16 page suitibility letter?

  8. Here’s a guy who is completely in tune with the world.

    Or is he just saying it because it’s a good sound bite?

    All fluff no substance – sums up the Lib Dems perfectly!

  9. ‘There is a real danger of misselling under auto-enrolment’

    How? – What is being sold? Employer is obligated to offer access and auto-enrol under NEST rules. There will be no advice unless of course the employer pays for this advice to be given.

    We do not charge for the first meeting with a prospective client – the time is spent discovering where the issues (if any) lie and not in giving advice. If someone says they are unsure given all the information provided whether NEST is good for them then that would be an ‘issue’ which would need research & analysis and thus would require a charge.

    I am sure that NEST will have some decision trees to help in any event!

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