Over a third of Trustees already facilitating financial advice to members at retirement
13 Dec 2019
- A further 11% of Trustees plan to offer this service in the next year
Over a third (34%) of DB pension Trustees have taken steps to facilitate reputable financial advice for their members as they approach retirement, according to research by Hymans Robertson, the leading independent pensions and financial services consultancy*. In the second instalment of its Evolution of Member Options report series the consultancy found that this trend is likely to grow as a further 11% of Trustees have plans in place to offer this service in the next 12 months.
By providing this clear route to trusted advice, Trustees and sponsors will benefit from a membership that is more likely to be fully engaged with their retirement choices making them less at risk of being victims of unscrupulous financial advisers. While trustees and sponsors may be concerned around the risks of members coming back to blame them should something go wrong. This can be mitigated through formal ongoing monitoring of the adviser, including member engagement and take up rates.
Ryan Markham, Head of Member Options at Hymans Robertson explains why the responsibility lies with Trustees to guide their members at retirement:
“Financial advice is complex, but crucial for members. Without it, they are, at best risking sleepwalking into retirement and, at worst they’re in danger of getting picked off by scammers. We know that a DB pension is now likely to be an individual’s most valuable asset, more so even than a property. This intensifies the need for quality, trusted advice to be available at the point of retirement. By facilitating or contributing towards the cost of this, Trustees can help ensure that their members’ retirements are in trusted hands.
“Regardless of how active an approach a scheme takes to member options, at some point their members are going to want to talk to someone they can trust about the choices they have. While Trustees are often concerned that facilitating this advice will open the door for members to reappear years later looking for someone to blame, recent headlines have made it clear that the risks attached to doing nothing and leaving members to fend for themselves are far greater.”