In
the wake of last week’s budget, it is interesting to see how debate and comment
is swiftly moving on. For a couple of days it was all about digesting the details
– the liberation of pensions and expanding of ISAs. Then things moved on to
what that meant, and what new options would be available to retirees. And now
that is giving way to a realisation that with so much choice on offer, people
need help.
And
so that brings us back to the question of advice; where do people go to get
advice? What does advice look like? How is it provided and what does it cost?
These questions were interesting before the budget, with the growing “advice
gap” being created by banks pulling out of the market and Advisers focusing on
high net worth individuals. With the budget well and truly throwing the cat amongst
the pigeons, the demand for advice must surely increase. Will the banks come
back into the market to meet this demand? Possibly, but given what a hash they
made of it last time, let’s hope not. Will Advisers offer their services to
small pot holders? Doubtful, given the profit margin on their new business
models. The harsh reality is the advice gap is not their concern.
So
where does that leave us? My view is those of us who do want to deal with
everyday people - the normal, mass market that holds an average of £50,000 in a
pension pot or simply wants to use this year’s ISA allowance - need to find a
new, modern way to supply our advice. And in my view that lies with the internet. That doesn’t mean it has to be automated, it
just needs to be delivered over the web – in some way. That will help keep
costs down and allow us to reach the maximum audience.
