UK wealth management firm Tilney Bestinvest and Saga, provider of services to the country’s over-50s market, have launched a joint venture to provide financial planning and investments to this market. It comes at a time people aged 50 and over hold more than three-quarters of all UK financial wealth, and have been given added investment freedoms by the government.

UK wealth management firm Tilney Bestinvest and Saga, provider of services to the country’s over-50s market, have launched a joint venture to provide financial planning and investments to this market. It comes at a time people aged 50 and over hold more than three-quarters of all UK financial wealth, and have been given added investment freedoms by the government.

The venture is called Saga Investment Services powered by Tilney Bestinvest. It becomes operational in the second half of this year.

Saga, which serves 2.7 million customers, will identify people within its proprietary database of 10.6 million over-50s who could use what the JV is offering, a statement from Tilney Bestinvest said yesterday.

The wealth management firm cited a study from Centre for Economic and Business Research, an economic consultancy firm, showing that people aged 50 and over hold 77.3 per cent of all the UK’s financial wealth (£1.2 trillion [$1.82 trillion]) and 70.8 per cent of pension wealth (£3.4 trillion).

UK finance minister George Osborne has unveiled measures, taking effect in April, allowing pension fund holders far more freedom on how to use their portfolios, including unlocking money from such plans.  

“With radical reforms to pensions coming into effect this April, those aged 50 and over will face an increased range of choices both pre- and post-retirement. It is estimated that the new freedom to access pension savings will see an extra £1.5 billion released to spend or invest in 2015. Saga and Tilney Bestinvest therefore believe the demand for high quality financial information and access to trusted advice has never been greater,” Tilney Bestinvest said in a statement.

Saga will inform and drive the proposition design and customer experience, whilst Tilney Bestinvest will provide the investment and financial planning capability and expertise.