Standard Life has launched a new affordable pensions savings advice service for customers.
Standard Life Financial Advice aims to help those who would not “usually consider paid advice gain access to the support they need when saving and deciding how to take their pension income.”
The service is primarily targeting existing Standard Life customers from the age of 54 years and nine months and with a minimum of £50,000 saved in a defined contribution (DC) pension pot.
It will support customers with decisions such as how to structure their retirement income, the level of investment risk they should take in retirement and how to take tax free cash from their pension.
Customers can access tailored financial advice for a single flat fee of £1,000, regardless of pot size, with an optional annual review also available for £500 per review.
Standard Life Financial Advice launches with 10 advisers and will expand to meet future demand as it arises.
Standard Life said: “A decade on from the introduction of pensions freedoms, which gave people choice and flexibility around when and how to access their pension money, individuals face more responsibility than ever before to make the right decisions for their situation.”
Additionally, less than 10% of people currently use financial advice. The Standard Life offering is designed to widen the support available to those with modest savings.
Standard Life added: “The value of professional financial advice is clear.”
According to Standard Life research, 69% believe their adviser has helped to improve their standard of living and 77% said they are financially better off because of the advice they have received.
Damian Cheater, CEO of Standard Life Financial Advice Services, said: “We want to make financial advice more inclusive and accessible.
“Standard Life Financial Advice aims to fill a crucial gap for those who would not ordinarily seek traditional advice but need tailored support to maximise their options as the plan for retirement.
“As people live longer and pension freedoms increase complexity, the responsibility for making the right financial choices has shifted heavily onto individuals. Yet many feel overwhelmed, under-informed, or believe advice is only for the wealthy.
“I’m incredibly excited that our experienced team of advisers are now ready to begin helping people navigate some of the biggest financial decisions of their lives.
“With the onus increasingly on individuals to manage their retirement savings and less than 10% of people receiving financial advice, it’s clear that advice is currently out of reach for many, either due to cost or a feeling that they don’t have enough saved to consider having an adviser.”
Cheater said Standard Life had designed the service to make advice more accessible compared to some traditional financial advice models.
“We believe that having a single flat fee will prove attractive and help introduce more people to planning financially for their retirement,” he added.
Phoenix Group CEO Andy Briggs said: “This is a significant milestone for our retail business and our desire to serve the needs of customers.
“We are opening up the world of advice to many for whom this was previously not an option, to help them better prepare for their retirement and make the most of their hard-earned savings to and through retirement.”
Phoenix Group is the parent company of Standard Life.
