The government will look at how individuals who exercise pension freedoms can be given “a further nudge” to take guidance, pensions minister Guy Opperman says.
During the second reading of the Financial Guidance and Claims Bill in the House of Commons, Opperman shed light on how the government’s view on guidance is evolving.
He made the comments as MPs scrutinised proposals to create a single financial guidance body and the introduction of a cold call ban.
Opperman said that although the existing signposting regime already provides individuals with important information to take advantage of guidance and advice before accessing a pension pot, more had to be done.
He said: “We support the need for default guidance for people wishing to take advantage of pensions freedoms.
“That is why the new body is specifically required to meet the Government’s guarantee to make free and impartial guidance available to those considering accessing their pension pots.
“The Government accepts that there is merit in providing for people to receive a further nudge, and that this is the right direction of travel.
“To this end, my officials are reviewing the proposals put forward by the [work and pensions] select committee, and we will respond to the house and to the bill committee in due course.”
Regarding the pensions dashboard, Opperman said he would update parliament about its progress at the end of March.