View more on these topics

Lifetime Isa and auto-enrolment excluded from Pension Wise

Pension Wise jenga

Pension Wise appointments will not include information on the Government’s new flagship product the Lifetime Isa or automatic enrolment, Money Marketing can reveal.

A written question submitted to the Treasury by Conservative MP for Solihull and former financial journalist Julian Knight asked whether the guidance service would cover the two key areas.

But responding on behalf of the Government, parliamentary under-secretary of state for work and pensions Justin Tomlinson said: “The Government plans to restructure the delivery of public financial guidance to ensure that all consumers can access the help they need when they need it.

“Pension Wise does not give specific advice on products or provider recommendations. There are currently no plans for Pension Wise to provide guidance on lifetime ISAs or Automatic Enrolment.”

The decision comes despite calls – including from Citizens Advice chief executive Gillian Guy, see p. 28 – for the service to be expanded beyond its narrow pensions remit.

Royal London head of corporate affairs Gareth Evans says: “The pensions minister is keen on guidance being available, including in earlier years, so it seems strange that a pension guidance service will not provide information in these areas.”

Plutus Wealth Management chartered financial planner Sebastian Hurst says:This is a classic case of the Government putting something in place that is limited and has holes in it. The risk is people will go to Pension Wise and firstly think they are getting advice, and secondly that they will not get what they expect.

“The advice gap needs to be plugged and a lot of advisers will speak to people on a no obligation basis and that should be pushed more than anything else.”

The guidance service, which is funded by a levy on financial services firm including nearly £5m from advisers in 2015/17, has already been expanded to include over-50s.

March saw appointments hit a record high of around 7,000, but demand has been low since launch in April 2015. As a result, a third of guidance staff are to be cut. Last month the Department for Work and Pensions took over responsibility for running the service from the Treasury.

Recommended

21

Andrew Tully: Breaking the taboo on final salary pension transfers

Transferring out of a final salary pension scheme has long been seen as a taboo by many in the industry. But the issue has been thrown into much greater focus since the pension freedoms were introduced. This is partly because many schemes are offering transfer values higher than the historical average but also as a […]

Steve Webb urges Govt to progress pensions dashboard

Former pensions minister Steve Webb has called on the Government to take a stronger role in the development of a pensions dashboard, warning the project risks being left “in the slow lane”. As part of the Budget, Chancellor George Osborne pledged to ensure the industry designs, funds and launches a pensions dashboard by 2019. However, […]

Thousands expected to be hit by HMRC pension death tax error

Thousands of people are likely to have been sent notices asking for tax to be paid after they have inherited a pension, despite no tax being due. Last week Money Marketing revealed HM Revenue & Customs sent the notices after a system error and has had to ask providers to suspend reporting while it works […]

Don’t play chicken with the Bank of Japan

By Josh Ausden, Head of Client Investment Strategy, Neptune Short-term yen strength has hurt the Neptune Japan Opportunities Fund but recent events have only added weight to our conviction that the Bank of Japan will act to ease policy, boosting multinationals’ profits and weakening the yen. In recent weeks the performance of the Japanese stockmarket […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. AE not included! Then what’s the point of having Pension Wise?

  2. Whatever happened to holistic advice – you simply can’t deliver good advice if you’re only considering one aspect of someone’s finances? (Don’t look at me – the FCA said that!)

  3. So does that mean that if offers restricted guidance rather than independent guidance? 🙂

  4. Another clear demonstration as to why the Government should stay away from providing any financial guidance or advice and simply leave it to the professionals. We need more access to professional financial advisers and this is what the FAMR should of focused on. We don’t need pseudo advice services or Robo decision trees. We need more advisers who can advise in a holistic way across all product areas.

  5. we the advisers do not want pension Wise, because they are not. we have to pay to be advisers, and we have to pay for pension Wise. This is our business not the FCA’s, or the Treasury’s or indeed anyone’s apart from the client, the government is already asking people to rob their own pension funds, because the government then cannot be blamed for the theft. The FCA are just a bunch of blundering failed lawyers, who cant keep a CEO.

Leave a comment