Wake up your Wealth has today launched what it claims to be the first fully independent online pensions advice service.
The Pension Wizard uses algorithm-based advice, which is already used in online propositions in the United States, to recommend low cost, passive funds.
Clients enter personal information regarding the number of years to retirement, investment experience, attitude to risk, retirement flexibility and financial resilience and are then given a breakdown of the investment products and allocations that suit their circumstances.
The service then graphs how the client should lower the risk of their portfolio as they near retirement age.
During the next step, the service recommends a platform that can offer the range of funds required.
Wake up your Wealth says it has surveyed the whole market and has compiled a panel of 10 platforms, which offer 13 Sipps in total.
The platforms are Aviva, Axa, Cofunds, Hargreaves, James Hay, Novia, Prudential, Skandia, AJ Bell and Standard Life.
Wake up your Wealth chartered financial planner Greg Neall, who is a former Sage Financial adviser, checks and signs off each case before a recommendation is made to the client.
The service costs £49 per pension, or £99 for every pension that must be moved to a new platform or product.
An annual management charge of between £100 and £300 applies depending on the size of the pension.
If clients want further advice services it will cost between £50 and £250 per hour.
Wake up your Wealth also has a ‘pension tidy-up” service which offers advice on whether a client should move their existing holdings. This costs between £99 and £499 depending on the number and complexity of their existing pensions.
Wake up your Wealth executive director Andrew Firth (pictured) says: “We are bringing together the very best principles and practices of high quality independent financial advice, with the very latest online technology, to deliver a revolutionary service fit for today’s world and how people prefer to get things done, via the convenience and control of engaging online.”
Firth says the firm is planning to add an investment capability to the website over the next 12 months.
Finance and Technology Research Centre director Ian McKenna says: “It is great to see an adviser business recognise the opportunity that exists to deliver affordable services to consumers using an algorithm-based approach. I believe this is an example of how the next generation of advice businesses will embrace technology in a post-RDR world.”
Jacksons Wealth Management managing director Pete Matthew says: “There are some real opportunities out there for firms that can make this kind of thing work and it sounds like a good proposition. Anyone who can get in early and offer a solution for clients who cannot afford advice could really clean up.”