More than a third (34 per cent) of trustees are taking steps to ensure members get professional financial advice at retirement, according to new research.
Pensions consultancy Hymans Robertson says this is a growing trend, with a further 11 per cent planning to offer this service within the next year.
These figures are within the latest version of its ‘Evolution of Member Options’ report.
Hymans Robertson says that by providing a clear route to trusted advice sources, trustees and sponsors will benefit form a membership that is more engaged with their retirement choices, and less at risk of being victims of unscrupulous financial advisers or scams.
It adds that some trustees and sponsors remain concerned about the risks of members coming back to blame them should something go wrong at a later date. However it says these risks can be mitigated through formal ongoing monitoring of the adviser, including member engagement and take up rates.
Hymans Robertson head of member options Ryan Markham says: “Financial advice is complex, but crucial for members. Without it, they are, at best risking sleepwalking into retirement and, at worst they’re in danger of getting picked off by scammers.
“By facilitating or contributing towards the cost of this advice, trustees can help ensure that their members’ retirements are in trusted hands.
“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 to future complaints, recent headlines have made it clear that the risks attached to doing nothing and leaving members to fend for themselves are far greater.”
