Former Treasury select committee chairman Lord John McFall is calling on the Government to provide greater subsidies to encourage more people to take financial advice.
Under current rules, pension advice worth £150 a year can be offered as a tax-free benefit to employees who sign up to a corporate scheme. However, if the cost exceeds £150, the whole amount will be taxed. McFall, who is chairing the workplace retirement income commission, wants the Government to provide a greater subsidy.
At the Money Marketing Investment Summit in Bedfordshire last week, McFall said: “The current legislation for advice on pensions allows people to get £150-worth of advice. I think there is room for that in the rest of the financial advice area.”