Online-only IFA launches pension wizard
The new service is built on the ‘Algorithm Based Advice’ concept which is already established in the USA, delivering low cost automated online financial planning services.
The FSA’s Retail Distribution Review of the UK’s existing advice industry is widely expected to reduce the availability of advice for the mass market, as advisers withdraw from the market or focus on wealthier clients. Wake up your Wealth’s Pension Wizard looks to fill the advice gap, providing users with access to affordable advice.
The Wizard works by gaining a thorough understanding of the client’s personal profile, employing tools built using Wake up your Wealth’s Chartered Financial Planning expertise and the best psychometric principles. It then provides advice on investment strategy now and going forward to retirement using lower-cost passively managed investment funds.
Andrew Firth, founder and executive director of Wake up your Wealth said:
“We are bringing together the very best principles and practices of high quality independent financial advice, with the very latest in online technology, to deliver a revolutionary service fit for today’s world and how people prefer to get things done – via the convenience and control of engaging online.
“The timing is also ideal, as the FSA’s ban on commission will soon take effect and will cut the numbers of advisers serving the wider population of less wealthy people. Wake up your Wealth is very much designed as the perfect solution for this large audience that still needs and wants expert independent advice but would otherwise find it prohibitively expensive.
“Our service is radically cheaper than conventional face to face IFA services but with absolutely no sacrifice in the quality of advice delivered – both initially and then year after year at each annual review.”
At launch of the Pension Wizard, the products of 12 UK pension providers are included, as each offers the low cost, passively managed funds that Wake up your Wealth advises all of its customer to use.
Should a customer have one or more pensions with providers outside of this range, then they can use Wake up your Wealth’s ‘Pension Tidy-Up’ service. This service provides advice on whether it is worthwhile to move these existing holdings to a lower cost pension solution and gives customers the same advice provided by the Pension Wizard in terms of the optimum investment strategy for their personal profile.