Hargreaves Lansdown launches retirement planning service
Investment platform and advisory company Hargreaves Lansdown has launched a flat-fee retirement planning service for those unwilling or unable to pay for full financial advice.
Charging £395 plus VAT, the HL Retirement Planning Service aims to scoop up some of the hundreds of thousands of people set to retire each year who might want personalised advice on how best to set up their retirement income arrangements, but are unwilling or unable to pay the estimated industry standard of around £1,000 for retirement advice.
Customers will start the process by completing a questionnaire, then they will receive a printed report and have an hour's phone conversation with an HL adviser. The report will contain summaries of the main issues for the investor to consider and includes a prediction of cash flow in the future.
However, although the service counts as financial advice, it stops short of giving customers a specific personal recommendation - which specific products to invest in, for example. The adviser will give customers a 'sense check' of their plans, and help them decide which mix of options to use.
"The pension freedoms have fundamentally changed the pension system, overturning many established conventions around how and when investors draw on their retirement savings,' says Hargreaves' head of pensions research Tom McPhail.
"The Pension Wise service provides investors with an invaluable introduction to the key issues they need to think about. The HL Retirement Planning Service takes investors a stage further than Pension Wise, walking them through the issues they need to consider when setting up their retirement income."
Find out everything you need to know about the new pension freedoms and how to plan ahead for the retirement you deserve withthe new issue of How to Retire in Style. The magazine is available to buy now from all leading newsagents, priced at £4.99. It can also be ordered online here for £6 including postage and packing.
This article was written for our sister website Money Observer
Invented by a Frenchman in 1954 and ironically introduced in the UK on 1 April 1973, VAT is an indirect tax levied on the value added in the production of goods and services, from primary production to final consumption and is paid by the buyer. Its levying is complex, with a number of exemptions and exclusions. For example, in the UK, VAT is payable on chocolate-covered biscuits, but not on chocolate-covered cakes and the non-VAT status of McVitie’s Jaffa Cakes was challenged in a UK court case to determine whether Jaffa Cake was a cake or a biscuit. The judge ruled that the Jaffa Cake is a cake, McVitie’s won the case and VAT is not paid on Jaffa Cakes in the UK.