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24/06/2014

Investment business Skandia, part of Old Mutual Wealth, believes that the ‘free, impartial face-to-face’ guidance revealed by the Chancellor in the recent budget announcement should act only as an introduction to full advice.

The retirement income market in the UK is in the midst of some of the most radical changes in living memory, following the Government’s proposed relaxing of the pension withdrawal rules from April 2015. From then, it is expected that retirees will be given greater access to their pension pots, with the ability to withdraw as much or as little as they wish.

Ahead of making these important decisions, it is suggested that consumers should be guided as to what their options are. However it is not a simple decision and there are many variables which will impact the most appropriate solution.

Apart from the more fundamental questions that require answering about guidance, such as when it should be delivered and by whom, it is also necessary to consider how the market is going to change and what new products will emerge that then need to be guided upon.

Adrian Walker, retirement planning manager at Skandia, comments: “The key here is consistency. It will be counter-productive if an individual has five different pension schemes and the guidance received from each scheme is different. This helps to answer the ‘who’ question and in our view this puts paid to the suggestion that at-retirement guidance can be delivered by providers.

“Consistency in the output of this guidance is also critical. It should be the case that whoever delivers guidance to an individual, the result should be two-fold. First, a report completed to an industry-approved standard providing a view of the individual’s financial situation. Second, an indication of where and how they can arrange a meeting with a financial adviser appropriate to their needs.

 “The report produced at this stage should be the ‘stepping stone’ that enables them to approach a financial adviser with at least a single snapshot of their wealth as they begin to phase into retirement.”

Walker continues: “If people get the accumulation phase of their retirement planning wrong they have options – they can work for longer, save more or take more risk with their investments to try and make up the shortfall. If people get the decumulation phase wrong and run out of money they have very few options, aside from relying on state benefits or going back to work. Neither of which may be desirable. Full, professional financial advice offers the individual the best chance of avoiding these circumstances.”

 

 

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to editors:

Quilter is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:

  • Intrinsic to Quilter Financial Planning
  • Private Client Advisers to Quilter Private Client Advisers
  • The Multi-Asset business to Quilter Investors
  • The UK Platform to Quilter Wealth Solutions
  • The International business to become Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

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