Hub Financial Solutions has today (March 12) launched ‘Destination Retirement’, an automated service which provides regulated financial advice to retirees seeking to make the most of their pension savings.
The service is available to employers, pension scheme trustees and corporate partners who want to give access to advice to their colleagues, members and clients.
According to Hub, Mercer has chosen Destination Retirement to provide automated advice to its UK corporate clients.
David Cooper, chief executive of Hub Group, said: “Millions of customers accessing pension money risk sleepwalking into poorer retirements by failing to take financial advice.
“Destination Retirement is a game-changing automated advice service which has been specifically created to help engage, educate and deliver bespoke solutions and ongoing advice at modest cost to customers who otherwise would not seek professional help.”
The service works by savers inputting the kind of lifestyle in retirement they would like to achieve. The programme then runs cash flow calculations across a range of asset strategies to deliver the optimum solution for each client’s requirements.
It enables savers to fully understand what the advice will do for them before they commit.
The service uses a combination of products such as pension drawdown, Isas, guaranteed income for life solutions and general investment accounts.
According to Cooper it is as thorough as traditional face-to-face advice, and takes into account factors such as non-pension wealth, tax-planning and spouse’s pensions.
He said the service will complement traditional advice, extending the benefits to a new audience.
Cooper added: “Financial advisers will always be in demand because many people value that personal, human touch.
“But there aren’t enough advisers for the hundreds of thousands of people starting their life after work, many of whom have modest assets and are reluctant to pay the premium fees for traditional advice.
“Destination Retirement expands advice to many millions who otherwise would miss out.”
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