Pension guru Steve Bee says advisers should not give advice on personal accounts unless the Government includes a warning that investors could lose out by saving in the schemes.
In an interview with Money Marketing last week, pension minister Mike O’Brien said the Government will not indemnify advisers against future compensation claims if consumers miss out on pension credits as a result of saving in personal accounts.
Bee, who is head of pension strategy at Scottish Life, says: “I think advisers should steer clear of giving advice on these if the Government is not going to indemnify advisers. If this was a packet of cigarettes, it would have to say these are quite dangerous.”
Hargreaves Lansdown head of pension research Tom McPhail says: “If the Government and personal accounts delivery authority are unwilling to indemnify advisers on this issue, then it is imperative that any communication on personal accounts makes it clear to people that it is by no means certain that you will gain from saving in them.”
O’Brien told Money Marketing: “Anybody who is giving financial advice will have to put in place the usual caveats. If you are saying to me, are we going to bankroll some financial advisers around the country to give various kinds of advice, then the answer is no.”