People who have been sensible enough to save for their future will be sensible about spending their pension pots in retirement, Paul Green has said.
The director of communications for over 50s provider Saga said: “People who have been sensible savers are not going to go mad now the pension freedoms have come in. There will not be champagne corks popping in local car dealerships across the UK.
“However, we estimate that with an extra £1.5bn potentially being released from people’s pension savings, they will be needing to use it to provide them with an ongoing income. They will need guidance and advice.”
He said the new product range from Saga, which is estimated to launch this autumn, will help provide a place for this “wall of assets”.
In January, Saga announced a tie-up with Tilney Bestinvest to create a bespoke range of investment and information that would be appropriate for Saga customers.
He said: “We have not rushed to the market but will provide product and pricing details later this year.”
There are 2.3m Saga customers, with 10m on its database. ONS figures put the over-50s population in the UK at 23m currently.
Peter Hall, chief executive of Tilney Bestinvest, said: “Whether people are planning ahead for retirement, or have an investment portfolio to manage in retirement, this will provide clear, impartial information and expert support to help people make the right financial decisions.”
Paula Steele, managing partner of London-based John Lamb, said: “There is a rationale behind the creation of risk-rated investment portfolios and creating income-generating products but at the end of the day, clients will need advice.
“I think the right advice is more important than the product. Such portfolios will definitely provide a service, and it is good that Saga is not rushing it, but I do think that people will need proper advice before opting for any investment proposition.”