View more on these topics

Govt eyes Pension Wise revamp amid take-up concerns

Parliament-UK-London-Thames-Building-700x450.jpg

The Government is considering revamping the information provided in retirement guidance sessions amid concerns over take-up of Pension Wise.

Speaking during a Work and Pensions select committee hearing this morning, Treasury economic secretary Harriett Baldwin said Citizens Advice – which delivers face-to-face retirement guidance – had raised concerns about some of the information provided through the sessions, particularly around guaranteed annuity rates.

Under FCA rules, anyone with a safeguarded pension worth £30,000 or more must take advice before accessing their savings flexibly. This includes people wanting to transfer from personal pensions with valuable GARs attached.

She said: “The guidance delivered by telephone is admirable in its consistency. There’s been a goal of consistency, and the FCA and industry have observed how consistent and high quality this guidance has been.

“We’ve had feedback from CAB that one or two things in the generic script and follow-up letter could be more customised to particular circumstances, particularly around GARs.”

Treasury director of financial services Gwyneth Nurse said the Government is “looking to develop Pension Wise”.

She added: “Without pressuring the advice boundary, [we want to] do what we can to make it more personal to each individual.”

Baldwin also disputed that take-up of Pension Wise has been low. More than 200,000 people accessed their pension in the first three months of the freedoms, but only 20,000 received telephone or face-to-face guidance from Pension Wise.

Baldwin said the Pension Wise website has had 1.5 million unique users since it was launched.

She said: “Of the people who have acted, how confident am I that those 200,000 have got at least guidance? I’d be confident it’s all of them. Since the campaign started again, we’ve seen a big increase in the number of hits [on the website].”

Recommended

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

Lighthouse profits climb despite hike in FSCS costs

National advice firm Lighthouse Group has posted an increase in profits of over 300 per cent for the first half of 2015 despite a Financial Services Compensation Scheme levy of over £440,000. The firm posted a pre-tax profit of £359,000, up from £88,000 for the six months to 30 June. But it also saw a […]

FSCS-Piggy-Bank-500x320.jpg
6

FSCS director of operations steps down

Financial Services Compensation Scheme director of operations Kate Bartlett has stepped down from the organisation. Bartlett joined the FSCS in 2010 and was a member of its board. An FSCS spokeswoman says the lifeboat scheme is seeking a replacement who will take on the newly-created role of chief operating officer. The spokeswoman says: “Our service […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Pension Wise costs £35,000,000 to run and did 20,000 telephone or face to face guidance sessions (I’d be interested to know the breakdown as I bet there were far more telephone sessions). That makes each session cost £1,750. That’s a reasonable fee for proper face to face IFA ADVICE and implementation.

    I appreciate there are other things such as the website and literature but how can these costs be justified.

    A voucher system giving £300 for 2 hours of IFA time would cost £6,000,000 and be far more beneficial.

  2. When everything goes wrong, will the Treasury/DWP/CAB be liable for FSCS costs/fines, or will it all fall on to honest IFAs who refuse to facilitate transactions that the Pension Wise website ‘guides’ people to?

    Let me think…….

Leave a comment