On the go: One-third (34 per cent) of defined benefit scheme trustees are facilitating financial advice for their members as they approach retirement, new research found.
According to a survey of 100 DB trustees conducted by Hymans Robertson, a further 11 per cent of these professionals have plans in place to offer this service in the next 12 months.
The consultancy firm’s report also revealed that more than a quarter of trustees contribute towards the cost of financial advice for their members.
Ryan Markham, head of member options at Hymans Robertson, noted that financial advice is complex but crucial for members.
“Without it they are, at best, risking sleepwalking into retirement and, at worst, they are in danger of getting picked off by scammers.”
Mr Markham said that a DB pension is now likely to be an individual’s most valuable asset, more so even than a property.
“This intensifies the need for quality, trusted advice to be available at the point of retirement,” he said.
“By facilitating or contributing towards the cost of this, trustees can help ensure that their members’ retirements are in trusted hands.”
He added that regardless of how active an approach a scheme takes to member options, at some point their members are going to want to talk to someone they can trust about the choices they have.
“While trustees are often concerned that facilitating this advice will open the door for members to reappear years later looking for someone to blame, recent headlines have made it clear that the risks attached to doing nothing and leaving members to fend for themselves are far greater,” Mr Markham said.
