Ruth Kelly, the financial secretary to the Treasury has announced plans to introduce financial advice into the workplace within 10 years. Ms Kelly said, "I think that the workplace will be a major distribution channel, not just for pensions, but for all products".
Whilst employers have apparently seen the benefits of the concept, many are worried that employees will see them as choosing the adviser and blamed for any mis selling. The Treasury are apparently looking into this.
Our View
The idea of allowing independent financial advisers into the workplace will be of benefit.
Confidence in saving for the future is exceptionally low, partly because human nature is to put off savings when spending is easier.
It is our experience that employees given half an hour off work will use the time to their advantage, even when it comes to looking at their financial situation.
If solid, transparent advice is introduced with a minimal chance of mis selling, the Government will increase consumer confidence and long-term savings.