Press comment: Pensions Advice Allowance
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Press comment: Pensions Advice Allowance

31/08/2016

If you are covering the government consultation into the Pensions Advice Allowance, please see the following commentary from Richard Freeman, Old Mutual Wealth chief distribution officer.

The consultation is the result of recommendations from the Financial Advice Market Review (FAMR) final report, which also includes proposals to ‘improve the existing £150 income tax and National Insurance exemption for employer-arranged advice on pensions.’

Richard was part of the expert panel supporting government through the FAMR consultation process and remains part of the Financial Advice Working Group, which has been tasked with developing some of the recommendations set-out in the review.

Richard FreemanRichard Freeman says:

“The financial planning market has changed dramatically in recent years, as has the retirement savings landscape. Individuals approaching retirement have a plethora of options available to them and it is really important they are able to balance flexibility with sustainable, long-term planning. The best way to achieve this and get peace of mind and reassurance about retirement choices is to see a professional adviser.

“Being able to access part of your pension to cover the cost of advice is a step in the right direction and will help people meet the cost of retirement planning advice from a qualified professional.

“However, there is still more to be done. This is just one part of the output from the Financial Advice Market Review launched last year but we hope it will be the first of many measures introduced to help people access financial advice.

“There is still room for greater incentives for employers to help their staff meet the cost of advice. It is already possible for firms to help retiring employees get advice, with up to £150 of advice tax-exempt when arranged by the employer. This threshold should be increased to give consumers the best possible chance of accessing professional financial advice at-retirement.

“And there are lots of other steps that could be taken to improve access to advice, both by creating a business environment that allows financial planning firms to grow and also by encouraging consumers to recognise the various points during their life when they could benefit from some help with their financial choices.

“Our research with YouGov shows that people who saw a financial adviser to review their plans for retirement end up with an average of 41% more income than those who had never taken advice.”

 

 

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469 144535michael.glenister@omwealth.com

Notes to editors:

About Quilter plc:

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

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset 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 the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• Private Client Advisers to Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.