By Daniel Hunter
Workplace saving could become a growing market for advisers and providers and help close the UK’s financial advice gap following the introduction of the Retail Distribution Review (RDR), according to Deloitte, the business advisory firm.
Deloitte research indicates that up to 5.5m people will reject paying a fee for financial advice — but a significant proportion is open to the idea of financial advice sourced by their employer.
A third (33%) of employees would pay for an in-house financial adviser provided by their employer;
18% would use more financial planning services through their workplace if it were offered by their employer (or a third party acting on behalf of their employer);
However, the development of work-based financial planning faces obstacles.
More than a quarter of employees (27%) do not want their employer to know more about their financial arrangements, and nearly one in five (19%) do not trust their employer to provide financial advice or planning;
Andrew Power, lead RDR partner at Deloitte, said:
“The RDR and introduction of adviser charging poses significant challenges for advisers and providers. One option for them is to increase work-based financial advice, although there are hurdles to overcome. More than a third of people (34%) have a company pension, giving them an obvious reason to seek financial advice in the workplace. From the providers’ perspective, this opportunity to give advice in the workplace is significant.
“Deloitte’s research indicates people will be willing to use a work-based adviser, particularly if their employer shares the cost of advice. Dealing with a larger number of people at an office also gives advisers an opportunity to reduce the cost of advice.”
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