BUDGET OFFERS ADVICE FOR RETIREES SHOULD PROVIDERS PAY FOR IT? 11.04.14
This is brought about by the budget promise to fund £22m for advice to retirees. This is not enough to provide individual free advice. So should providers pick up the tab? The answer probably is that they will as it is a marketing opportunity for them. That is exactly why it should not be the case. It is important that the advice be independent of providers to be in the best interest of the retiree.
It should be funded by government or the industry as a whole via an independent. The government already provide retirees with details about the options for their state pension. Other details could be added regarding other options in the market. Better still an interactive website could be developed for retirees to refer to. They could then put in their own details and get options. The danger is would they fully understand the options. Would the options offered be totally tailored to the inquisitor? Probably not but the inquisitor would be unaware or ignore the short comings warning.
Possibly a small percentage of the fund could be legally earmarked for independent financial advice. For small pots this would not be enough and for others not required. I favour government providing a website and leaflets to retirees covering the basic options and highlighting the areas where independent financial advice may be important.