National advice firm LEBC is backing an amendment to the Financial Guidance and Claims Bill to give retirees default guidance as MPs vote on the legislation today.
In December 2017 the Work and Pensions Select Committee said the Government should ban pension cold calling and introduce default guidance through the bill.
On 6 March the Government tabled amendments to include these recommendations and pensions minister Guy Opperman has supported the idea of default guidance.
LEBC backs the select committee amendment, which requires pension providers to automatically refer retirees to the guidance service before they choose how to take their retirement funds.
It believes this will help more consumers understand all the options they have at retirement and to shop around for value for money.
LEBC director of public policy Kay Ingram says: “The FCA review of retirement outcomes showed that too few consumers shop around at retirement and consequently miss out on thousands of pounds of retirement income over their lifetime.
“We know from our experience of advising over 25,000 retirees per year that up to 70 per cent of them can qualify for an enhanced guaranteed lifetime income, once all of their personal circumstances are taken into account.
“We gave evidence to the select committee urging that all retirees should be referred to the guidance service, unless they have already taken regulated independent advice.”