Capita launches new advice service for employees nearing retirement

Gary Smith, 22 August 2016

Capita Employee Benefits has joined forces with LV=, Foster Denovo Limited and Towry to offer guidance and financial advice to members approaching retirement.

The new ‘At Retirement’ service, is being headed up by newly appointed Rob Tinsley who recently joined from Aspire to Retire, and is aimed primarily at employers and trustees with defined contribution schemes. It has been developed in response to significant demand following the introduction of freedom and choice within pension schemes.

At Retirement has been designed to help meet the needs of the pension scheme member, while enabling employers and pension scheme trustees to offer advice services to their employees, thereby helping to safeguard their workers’ financial welfare.

At Retirement will offer three tiers of advice:

  • non-advised (through LV=), for members who know what retirement strategy they want, which may typically include an annuity purchase;
  • robo-advice (through LV=) for relatively straightforward, medium sized pots, which is backed up by telephone support from regulated advisers;
  • full advice, with either face-to-face  or telephone based advice offered by either Foster Denovo or Towry, for those with typically larger pots, more complex needs, or those who don’t want to use an online service.

The pension freedoms give members far greater choice in at-retirement solutions, however, financial advice hasn’t always been viable for the mass market and consequently, there is the possibility of members making ill-informed decisions about their long term financial wellbeing.

Gary Smith, head of DC at Capita Employee Benefits, said: “We know that not enough people are willing to pay for advice upon retirement, with most wanting that service to be offered by their employers while they are still in the workplace. Unless they are offered this service, ill-informed retirees risk making bad decisions, at a time when advice is essential.

“Not only will our At Retirement service help minimise that risk, it will help employers demonstrate good governance and offer an enhanced retirement process to their valued employees. What’s more, we hope it will also increase member engagement with their pension schemes, and improve outcomes by safeguarding their financial welfare.”

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 Capita to offer their members a convenient, affordable solution and help make regulated advice more accessible, even for those with smaller pots.”

Roger Brosch, CEO at Foster Denovo, said: "We have always advocated the need for financial wellbeing in the workplace. It is therefore extremely positive to see Capita supporting its clients’ employees in this way, and to be involved in something that has the potential to affect many lives."

Andy Cowan, head of private client at Towry, said: “There are many choices and opportunities facing people approaching retirement. In many cases it’s not just about pensions it’s more about a future lifestyle, and creating a plan that helps them to achieve this lifestyle to give them the retirement they want. At Towry we are well placed to deliver this and are delighted to be working with Capita to deliver advice at a critical stage in an individual’s life.”

For more information on our At Retirement service, visit our DC Pensions page.

About the author

Gary Smith Head of DC Consulting

Gary Smith