The People's Pension and LV= offer £49 robo-advice

From next month, the 2.3 million members of The People’s Pension and EasyBuild will have the option to make use of the online solution.

Members will be able to access a free guidance report setting out four possible uses for their pot and how long it could last, and a personalised online retirement advice service costing £49.

B&CE says they will still be signposted to traditional advice routes first, but the online tool will help "fill the advice gap for those who don’t want to use them".

Recent YouGov research for The People’s Pension found that only one in five of the general public (18%) currently use a financial adviser and that nearly three in ten (30%) who have a pension would prefer to use online tools for financial advice than speak to a financial adviser.

Roy Porter, Director of Business Development for The People’s Pension, said:

“We know advisers play a really important role in helping people make decisions about their individual circumstances at retirement if members choose to engage with them, so we’ll continue to promote traditional options with our members when they contact us at retirement as well as the online service.

“Our research suggests that a lot of people are not taking advice at the moment. Whether that’s because of cost, lack of awareness or fear, it’s creating a big guidance and advice gap which needs to be filled.

“That’s why we’re really excited to be working with LV= to launch these new options for our members. The free guidance report should help savers assess their options, and at just £49 for detailed online retirement advice, this brings an additional affordable choice for our members to help them obtain a good outcome from their retirement savings.”

John Perks, Managing Director of Retirement Solutions at LV= said:

“We’ve found that nearly half a million people retire each year without taking advice, meaning they could be losing out. At present there is a lack of affordable, accessible, quality advice but LV= has been at the forefront of finding innovative ways to make it easier for people to take advice.

“LV= is delighted to be working with The People’s Pension to offer their members a convenient, affordable solution and help make regulated advice more accessible, even for those with smaller pots.”