Standard Life, part of Phoenix Group, said it has launched a new “affordable” retirement savings advice service for customers called Standard Life Financial Advice.
At launch, the retirement advice 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.
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.
“The service aims to help those who wouldn’t usually consider paid advice gain access to the support they need when saving and deciding how to take their pension income …” said Standard Life.
“The service 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 …
“Standard Life Financial Advice launches with 10 advisers and will expand the team to meet future demand as it arises.
“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.
“At the same time, fewer than ten percent of people currently use financial advice, potentially missing out on crucial support. The Standard Life offering is designed to widen the support available to those with modest savings – the 90% plus in the UK who don’t receive financial advice.
“The value of professional financial advice is clear. The addition of Standard Life Financial Advice will complement the work of the established adiser community.”
Damian Cheater, CEO, 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 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 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.
“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.”