As part of his shake up of the annuity market the Chancellor promised that all people on defined contribution plans will no longer be forced to buy an annuity.
Under these plans he promised that everyone will be offered free and impartial advice posing the challenge of how this can be delivered in a cost effective way.
Research conducted by Vizolution has indicated that a face-to-face advice session with a customer costs the firm £250-500 depending on travel time and cost of the adviser.
This makes it uneconomic to advise customers with limited funds.
But Bill Safran, chief executive of Vizolution, said that advisers and pension firms can use vScreen remotely to provide clients with advice without losing any level of engagement at a lower cost.
Each session is recorded and by using electronic signatures a compliant advice process can be evidenced to help guard against potential future mis-selling claims in the future.
Safran said: “With the removal of the compulsion to purchase an annuity there has never been a greater need for consumers to receive appropriate advice.
“Should an annuity still be wanted, consumers need to be made aware of the huge choice available and the benefit of shopping around to find the best deal.”
The flexibility offered to pension holders as a result of the annuity changes has led to property experts speculating over the effect it could have on the buy-to-let market.
While some experts predict there will be a surge in buy-to-let property purchases as retirees look for alternative asset classes to invest in, others think the tax implications of doing so would be too detrimental to the fund.
