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.”