View more on these topics

Mark Hoban: ‘One off retirement guidance session is not enough’

Former Treasury financial secretary Mark Hoban says that only providing a one-off guidance session at retirement will not be enough to make sure people get the best value from their savings.

The Chancellor announced in March’s Budget that everyone will receive “free, impartial, face-to-face” guidance when they reach retirement from April next year. The commitment is designed to support radical liberalisations that mean anyone aged 55 or over will be able to take their entire pension pot as cash.

Speaking in a debate on the Queen’s Speech in the House of Commons yesterday, Hoban said if the Chancellor’s reforms are to be effective the guidance guarantee will have to offer more than a one-off session.

He said: “How will we ensure that people have good guidance at the right point in their life? Simply having guidance at retirement is not enough, given that people’s needs change over the period of their retirement.

“How will we gather together all the information about people’s pensions and savings so that we can give them good quality guidance? Will there be a digital service that people can dip into at will, or will advice always be face-to-face or on the telephone, which would be more expensive?

“How will we ensure that people take up the offer of guidance, so that they get the support and help they need to make the most of the new freedoms that we provide?

The Treasury’s consultation on the guidance guarantee says people who make use of the new flexibility around pensions will need “continuing access to support” and asks for responses on how guidance can be made available at “key decision points during retirement”.

Hoban said: “If we get the guidance process right, it will help more and more pensioners to make better use of the assets that they have accumulated over their working life and ensure that they have the income that they need in retirement.”

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. This is for me – aim not going to be a financial adviser any more. I am going to become a financial guider that charges initial advice fees and then fees for ongoing guidance. No FCA to worry about, No FOS to worry about, No FSCS to get concerned about, No PI etc etc. Sounds like a plan to me. Anyone else??????

    I wonder how long it will be before the first “Miss-guidance” complaint comes in and to whom will it be directed? Now theres a conundrum to be pondered.

  2. Julian Stevens 6th June 2014 at 7:29 pm

    Who will pay?

  3. Samuel Lewis Mayes 9th June 2014 at 8:04 am

    What Marty said.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com