Marvin OnumonuStandard Life has launched an affordable retirement advice service aimed at people who don’t usually pay for financial advice.
Standard Life Financial Advice is open to existing customers aged 54 years and nine months or older, with at least £50,000 in a defined contribution (DC) pension.
The service offers advice on retirement income, investment risk, and taking tax-free cash, all for a flat fee of £1,000, regardless of pot size.
An annual review is available for £500.
At launch, the team has 10 advisers and is set to grow as demand rises.
The service is aimed at the more than 90% of people in the UK who do not currently get financial advice.
Research from Standard Life found 69% of people who used an adviser said their standard of living improved, and 77% said they were financially better off.
Damian Cheater, CEO of Standard Life Financial Advice Services Ltd, 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 they 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.”
Cheater added: “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 percent 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.”
He said: “We have designed our 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.”
Andy Briggs, CEO of Standard Life parent Phoenix Group, 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.”
