Self-invested pension provider Hornbuckle has launched an ‘information tree’ tool on its website, designed to help consumers understand the product options available to them under the new pension freedoms in April.
Speaking to FTAdviser, Patrick Van de Steen, managing director for proposition and marketing, said the tool can be used by anyone, but the questions are very product specific and relate to its range of individual or group self-invested pensions or small self-administered schemes.
This means it focuses on the income options available within these flexible product wrappers and is not concerned with alternatives such as annuities.
There are up to five layers to go through, with at least two options to select from per layer. The first two questions ascertain basics, such as whether the respondent is a financial adviser or a pension saver and what kind of product is currently held.
The next questions focus on benefits, asking whether the existing plan has been drawdown, and, depending on the answer, what the client wants to do with their plan, such as take an uncrystallised lump sum or a pension commencement lump sum.
It then asks how the client plans to make cash available for the income to be drawn, with the options being to sell all or part of a commercial property, sell some non-standard or standard assets, or from the cash component of their savings vehicle.
Lastly, the tree issues a line or two reiterating what information it has given and offers a webform to allow people to request more detail, as well as ‘important notes’ like what to do if you have lifetime allowance protection.
Mr Van de Steen was keen to emphasise that the new tool is not a “decision tree” and neither is it advice. The service signposts people to the government’s guidance guarantee service, Pension Wise, as well as to regulated financial advice.
He pointed out that while the navigation tool can give an idea of the outcome, it urges consumers to obtain regulated financial advice.
“We want to push this out to as many people as possible and not just our own clients. If clients want to take this journey, they can initiate the process, but they can’t execute anything until the 6 April 2015.”
Last month, the Financial Conduct Authority published its final guidance clarifying advice thresholds. It said that if personal information, such as marital status and plans for the future, was not obtained then it would not be likely to be deemed a personal recommendation.
This is Hornbuckle’s second tool launch, following September’s roll-out of Investment Selector, which details permissible investments on its Sipp and how each investment type is treated.
Last October, the firm started to undertake a migration of data to a new digital platform.
donia.o'loughlin@ft.com
