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Pensions minister backs default guidance for pension freedoms

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.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. He said: “We support the need for default guidance for people wishing to take advantage of pensions freedoms.
    Why can this Minister not sort out the state pension ?
    He is neglecting his duty to the state pensioners whom are suffering due to previous Pension Ministers failure to address ‘discrimination’ which seems to affect the ministers and they ignore all calls for equality and respect for a minority of pensioners who are ‘frozen’.
    Yes Mr Opperman , Why do you avoid us and not get to grips with the lack of freedom of the state pension?
    A state pensioner does not have the freedom to live outside of the UK without checking whether the Government will ‘allow’ them to go with an indexed pension ? Where is the pension freedom here?
    Diabolical and discriminative policy that should be abandoned today by an honest Pensions Minister if only we could find one !

  2. In other words. We will keep kicking the can down the road, as the obvious solution involves giving money to ‘advice’ outlets to fund proper indemnified guidance for people who need it.

    The only people who should profit from this exercise, it appears, are the politicians who will spend time and effort (and claim expenses) appearing to address and debate what has been a problem for well over 2 years now! Pathetic!!

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