workplace savings be a vital source adviser biz

Workplace savings schemes could get around consumer reluctance to pay for advice and become a growing market for intermediaries, according to new research out today.

workplace savings be a vital source adviser biz


Business advisory firm Deloitte said its research showed that more than five million people will reject paying a fee for financial advice, but a third are open to the idea of financial advice sourced by their employer.

Andrew Power, lead RDR partner at Deloitte, said: “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 large number of people at an office also gives advisers an opportunity to reduce the cost of advice,” he added.

Specifically, 33% of employees would pay for an in-house financial adviser provided by their employer, while a further 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.

Not everybody was so positive on the idea, however, with 27% of employees reluctant to let employers know more about their financial arrangements. Nearly one in five respondents (19%) also said they do not trust their employer to provide financial advice or planning.

In a survey put together by online adviser community Panacea Adviser and research firm GfK it seemed advisers were also waking up to the possibilities of workplace savings, with 17% viewing workplace marketing as an important business stream.

Further insights from this survey, can be found here.



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