The venture will offer investment and financial planning services to Saga's database of 10.6 million following the introduction of the pension reforms, which will see an estimated £1.5 billion extra released to spend or invest in 2015.
Saga will inform and drive the proposition design and customer experience, whilst Tilney Bestinvest will provide the investment and financial planning capability and expertise. The business will be able to service customers throughout the UK and will be headquartered in London with a team of nationwide investment professionals and financial planners.
Lance Batchelor, group chief executive, Saga plc, commented:
“The investment and financial planning needs of the majority of Britain have not been well served by the financial services industry to date. We will develop a range of services and solutions tailored to the needs of people, rather than the convenience of financial institutions.
“Following a comprehensive review of different strategic options and potential partners, I am delighted to announce the JV with TBI this morning. I believe it represents the best opportunity for Saga’s customers and shareholders to develop an investment and financial planning service.
“Through this JV we aim to bring the level of expertise that has generally only been available to very wealthy individuals. Getting a better deal for customers is Saga’s guiding principle. Making the best of your savings will become increasingly important as people exercise the new pension freedoms, which are expected to unlock an extra £1.5 billion in 2015 alone.”
Peter Hall, chief executive of Tilney Bestinvest commented:
“Saga is synonymous with the over 50s market and like Tilney Bestinvest has a strong reputation for excellent client service and championing the needs of consumers. This partnership, which is based on shared values, will enable us to bring our award winning expertise to a much broader range of people.
“Whether people want to have their investments managed for them, have the support of an expert adviser, or to manage their own investments, we want the new business to be recognised as the market leader for meeting the investment and financial planning needs of the over 50s.
“The JV will design bespoke services and solutions that will be simple, easy to access and great value-for-money. Whether you are planning ahead for retirement, or have an investment portfolio to manage in retirement, we will provide you with clear, impartial information and expert support to help you make the right financial decisions. People will have a choice of dealing with us by phone, post, online or face to face.”
