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LV= calls for compulsory guidance to tackle ‘mis-buying crisis’


The Government should force savers reaching retirement to take guidance if they do not have a financial adviser, LV= says.

In its response to the Treasury’s consultation on public financial guidance, the mutual says low take up advice is creating a “mis-buying crisis”.

In the March Budget the Government revealed it is to create two new guidance bodies, responsible for pensions and money respectively, to replace the Money Advice Service and Tpas.

LV= says the compulsory guidance, which would be funded by an industry levy, needs to be broader than pensions to include other retirement income options.

According to the firm’s research around half a million people retire each year without taking financial advice.

Managing director of life and pensions Richard Rowney says: “The low take up of advice is leading to a mis-buying crisis where people are making important financial decisions without adequate support. It’s essential that all consumers are able to access affordable, regulated advice but when people can’t, or don’t, take advice we believe guidance should be compulsory.

“This would further inform retirees about their options and help them make the most of their money, so we fully support the introduction of a merged, one-shop money and pensions guidance body.

“Making guidance mandatory, and increasing accessibility of advice, would be beneficial to all, as not only would individuals be better off but they would be less likely to rely on state support in retirement and would contribute more to the UK economy.”


Berkeley Burke to partner with LV= robo-advice service

Berkeley Burke has signed a deal with LV= that will see it direct clients to the mutual’s online advice service Retirement Wizard. The service is aimed at private clients who either do not need, or are reluctant, to pay for full financial advice, or through workplace pension schemes. Users are charged £199 to produce a […]


LV= chief Mike Rogers to step down

LV= group chief executive Mike Rogers is to depart the mutual after 10 years at its helm. Rogers, who is also a non-executive director at Royal Bank of Scotland, will continue to lead the firm until a successor is appointed. He will also retain a role with the business into 2017 to ensure a smooth […]


Drawdown pushes LV= pensions business into profit

LV=’s life and pensions business has turned from a £7m operating loss in 2014 to a £41m profit in 2015. According to the mutual’s full year results, published today, the life and pensions division went into operating profit driven by a 26 per cent rise in pension sales, which includes drawdown, from £636m to £801m […]

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(Another) downhill stroll — retirement planning

A report published this morning by the CIPD (CIPD Employee Outlook March 2015) provides yet more interesting data to the changing landscape of retirement planning. It should be remembered that we are in a period of genuine flux here given that the default retirement age was scrapped three years ago, and new pension freedoms come online in April. Both of these alterations will have a huge impact on how employees plan for their retirement.


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Richard Wright 13th June 2016 at 2:26 pm

    Another Levy – you have to be Joking !

  2. So a retiree is forced to take advice they don’t want, pay an adviser whom they don’t want to pay, only for the adviser to endorse some sort of recommended action, which the client may likely ignore. The advisers fee, by necessity will have to be minimal, and will be swallowed by the additional levy to the FCA. The only winner is the Government who pays nothing an outcome that only they benefit from.

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