Saga Investment Services LaunchesSunday 8 November 2015
• Saga to offer straightforward investment services to the over 50s - whether they want advice, guidance or to make their own decisions • The service can help an estimated 12.5 million (1) people currently without a financial plan to ensure they enjoy retirement • Committed to honest and transparent pricing, with support and services for investments large and small • ISA and SIPP customers pay no service fees on the first £15,000 until April 2016(2)
Saga Investment Services Launches
Saga, the leading provider of services to the nation’s over 50s, and Tilney Bestinvest, the expert investment and financial planning group, have today launched a new partnership, Saga Investment Services. The service has been developed to open up the world of investing and financial planning to the UK’s over 50s in the run up to and throughout retirement, and to make the process as simple and stress-free as possible.
With an estimated 12.5 million1over 50s – more than half of the over 50s population - saying they have no financial plan to ensure they enjoy retirement, and just one in 103 currently using a financial adviser, Saga Investment Services offers customers a variety of ways to make the most of their money – no matter how much they have or their level of investment knowledge. They can do it on their own, with free online and telephone support4 from friendly experts, take one-off advice or have a longer-term relationship with a professional adviser.
Straightforward investing and helpful tools
Starting from just £50 a month, customers can invest through an ISA, Self-invested Personal Pension (SIPP) or general Investment Account. They can choose from five Ready-made Portfolios5 built around the most common financial goals, such as generating income or investing for growth, to invest quickly and with minimum fuss.
Alternatively, they can create their own tailored portfolio from scratch, with access to more than 2,000 funds, as well as investment trusts, shares and exchange-traded ‘tracker’ funds. The new Saga Select list can help these customers; containing 38 funds expertly selected by Tilney Bestinvest, it allows investors to discover the service’s top fund picks and access them at discounted prices6.
Customers looking to generate an income for retirement and take cash from their pension also have access to flexi-access drawdown.7
A personalised online dashboard allows customers to look at all of their finances – not just their pensions and investments - in one place, and includes the option to link with other family members' accounts. The website also hosts a range of free tools and calculators to help customers set financial goals and understand how investing can help to meet them.
The service is proud to be a member of the Plain English Campaign, and aims to simplify the complexities of investing by providing a ‘jargon buster’ to clarify any confusing terms.
Expert, cost-effective financial advice
For customers who don’t want to make their own investment decisions, or need some help getting started, Saga Advised Investments is available to them – for fees starting at just 1%. And where customers have more complex finance decisions to make, they can speak to one of Saga Investment Services' 46 financial planners, face to face, nationwide, with the first meeting available free of charge.8
Nici Audhlam-Gardiner, Managing Director of Saga Investment Services said:
“With people working longer, in retirement longer, and living longer it is more important than ever they have a plan in place to help them achieve their financial goals and understand how to make their money go further. And while the government’s radical pension reforms have given the over 50s even more control over their money, we understand that not everyone has the confidence to make these crucial financial decisions on their own.
“Saga Investment Services has been designed to help with just this issue. By combining Tilney Bestinvest’s investment expertise with Saga’s 60-year history of improving the lives of the over 50s, we have created a service that will help make investment easier to understand and more accessible, particularly for those who have been underserved by the financial services industry in the past.
“For years, the industry has made it too hard for people to get the support they deserve – unless they are a millionaire or investment hobbyist. Our plain English approach and access to financial advice and guidance means that customers will have support at every step. We want to help people to grow their money to achieve their retirement goals – big or small.”
Simple and transparent pricing
With recent research9 finding that more than two thirds of financial advisers fail to publish their fees on their websites, Saga Investment Services is bucking the trend with a commitment to simple and transparent pricing. The service publishes a full menu of its charges online, breaking down explicit fees for all of the options available to customers.
The website also includes a simple calculator (found at www.sagainvestments.co.uk/pricing) which allows customers to work how much they will pay for the online service and share dealing, in pounds and pence. Saga Investment Services charges a tiered service fee based on the value of the investments held in online accounts, excluding cash. Fees are calculated separately for balances in an ISA, SIPP and Investment Account, shown below.
|Value of assets||SIPP||ISA and JISA||Investment Account|
|up to £250,000||0.3%||0.4%||0.4%|
For a limited period2, Saga Investment Services will not charge a service fee on the first £15,000 invested online in an ISA, Junior ISA or SIPP account, and customers can also receive the benefits of being part of the wider Saga family. And to provide customers with confidence, they will be able to take advantage of a money-back guarantee for the online service10 if they are not completely satisfied in the first six months.
- Ends -
Notes to editors
1. Populus, on behalf of Saga, based on a representative sample of 2,999 people carried out between 16 and 22 October 2015. Populus is a member of the British Polling Council and abides by its rules. Extrapolation to Great Britain population aged 50 and over and uses ONS mid-year 2014 population estimates.
2. No service fee applied to the first £15,000 saved into the ISA, Junior ISA, or SIPP until at least the end April 2016. It does not include investments in the Saga Investment Account. Other fees may apply.
3. Populus, on behalf of Saga, based on a representative sample of 1,931 over 50s carried out between 7 and 11 October 2015.
4. Customer service centre is open from 7.45am-6pm, Monday to Friday, and 9.30am-1.30pm on Saturday, with a free 0800 number for new and existing customers.
5. Visit www.sagainvestments.co.uk/ready-made-portfolios to see the full range.
6. Preferential terms have been negotiated either through fee rebates or access to lower cost share classes not widely available to retail investors, from 21 fund groups. Funds on the Saga Select list have an average discount of 11 basis points.
7. No fees to administer flexi-access drawdown or make partial withdrawals from the SIPP. Other fees may apply.
8. Initial fees for Financial Planning and Advised Investment services range from 1% to 3%. Ongoing annual fees range between 0.75% and 1.25% a year. Fees vary depending on the complexity of the advice given.
9. See http://press.which.co.uk/whichstatements/which-calls-for-greater-ifa-fee-transparency
10. Terms apply. See www.sagainvestments.co.uk/pricing.
About Saga and Tilney Bestinvest
Saga is the UK’s leading provider of products and services tailored to the needs of the over 50s. From its beginnings in a hotel in Folkestone 60 years ago, it has evolved into a leading provider of high-quality insurance, financial services, travel, healthcare and media products. Saga has 2.6 million active customers and 11 million contactable people on its proprietary database.
Tilney Bestinvest is a leading investment and financial planning firm that builds on a heritage of more than 150 years. It employs more than 400 staff across the UK, and manages or administers more than £9bn on behalf of its clients. Tilney Bestinvest combines award-winning research and expertise to provide a personalised service to clients whatever their investment needs.
The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested.
This press release does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers. Past performance is not a guide to future performance
SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you. Self-directed investors should regularly review their SIPP portfolio, or seek professional advice, to ensure that the underlying investments remain in line with their pension objectives.
Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing.
The decision to access your pension is an important one and will affect your income and possibly your standard of living for years to come. In light of the new pension rules, before any decision is made on how you access your pension, we recommend you receive regulated financial advice or get free guidance from Pension Wise (www.pensionwise.gov.uk).
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