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LV= welcomes new single public financial guidance body

10 October 2016 | Press Release

Insurer responds to HM Treasury setting up new public body offering debt advice, money and pensions guidance

John Perks, Managing Director of Life and Pensions at LV=, said: "LV= welcomes the introduction of a merged, single money and pensions guidance body as this will help people wishing to explore a range of issues at retirement such as debt and equity release.

“We believe there should be a holistic approach to retirement income planning, taking into account the customer’s assets and exploring all the options available to them. All consumers approaching retirement need help navigating the options and choices available to them and guidance can be a good route to advice for those that need it. We therefore believe guidance for the over 55s should be mandatory for those that don't take advice.

“To ensure consumers get the most benefit from guidance, it’s essential that Government and industry work together to make them aware of the new body and the options available to them in retirement.”

LV= research has found:

  • As an estimate, nearly half a million[1] people a year retire each year without taking financial advice.
  • Of those within five years of retirement, four in ten (41%) don’t plan to take any advice or guidance at all.
  • Only one in five (21%) will take regulated financial advice, while just 14% will use Pension Wise – a similar percentage to those who will speak to friends and family (13%) or their existing pension provider (16%).
  • Nearly a quarter (22%) said they wouldn’t take advice because free guidance is sufficient, highlighting the need for quality guidance[2].
  • Yet typically someone who takes advice and shops around for an annuity receives a 23% increase in retirement income[3].

[1] According to ONS 2012 data, 600,000 people retire in the UK each year. Opinium December 2015 consumer research showed 78% of UK people over 55 who have not yet retired do not plan to take financial advice equating to 468,000 people.

[2] Opinium March 2016 research:1,572 online interviews with UK adults aged 50 and over, weighted to reflect a nationally representative audience.

[3] 80% of people shopping around for an annuity could have got a better deal (source FCA – Feb 2014) and there is an average 23% difference between worst and best annuity quote (analysis of MAS survey Apr 2015).

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LV=, County Gates, Bournemouth, BH1 2NF, UK