Financial Planning firm to provide new telephone advice service
A Financial Planning firm is set to offer a new telephone advice service as the pension reforms come into effect.
Jelf, which employs 30 Financial Planners, expects the initiative to start around mid-March.
The firm anticipates interest from retirees who traditionally did not seek advice but will now due to the greater complexity of the options facing them.
Lee Coles, Jelf's head of life after work, said remote advice has already been a feature of the service the company provide, to some extent, although it has primarily focused on face to face Financial Planning.
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He said the service, which is both for existing and new customers, is a continuation of a longer term strategy.
He said: "What we've got, which is well set, is a Financial Planning business, with some remote advice and a strong employee benefits business with a pedigree around finance education.
"On the back of pension freedom there'll be people who traditionally haven't sought advice that will now, but they won't want a service with all the bells whistles."
He said: "It will be less expensive than face to face because it's obviously lower cost to provide the service, so people should pay less for it."
He stressed that Jelf is not setting up an automated online advice system. The new service will all be telephone based while making use of technology, with advisers and customers perhaps viewing documents online together while speaking.
Jelf's phone advice will be 'dovetailing' with the Government's Pension Wise guidance service, he said.
Mr Coles expects two types of client to seek Jelf's telephone advice.
Firstly, the traditional kind who is looking to use a pension with income for the rest of their days after work but who has more complex issues due to wider choice.
Secondly, those wanting to meet short term needs, perhaps raising cash for a mortgage, home improvements or travelling.
Mr Coles said for those aged 55 finding they have access to a six figure sum: "It's not difficult to find reasons to spend that money - those people will need help."
Clients that can not be dealt with over the phone, because they have more complicated issues or need advice on matters like Inheritance Tax, will be recommended to go for face to face planning.
There will be five staff providing the telephone service, though this may be increased if it proves particularly popular.
While it may only be a relatively small part of the overall business initially, Mr Coles said potentially it "could grow to be very big".