Prudential has hit back after rival firms argued providers should not be involved in offering retirement guidance to savers to support Chancellor George Osborne’s radical pension reforms.
During his Budget speech last month, Osborne guaranteed that every defined contribution saver would receive “free, impartial, face to face advice” to help them decide how to spend their pension pot.
However, the Budget documents downgraded the pledge to a “guidance guarantee”.
Last week Money Marketing revealed insurers were at war over who should deliver the guidance, with two saying they could quit the Association of British Insurers over the issue.
However, Prudential UK and Europe distribution change director Russell Warwick says: “While there are clearly differences of opinion as to the role that providers could play in providing the guidance, we shouldn’t overlook the strengths and experience that many providers have in this area.
“These strengths include the ability to identify and access customers who are coming up to retirement, expertise in the existing policies these customers hold and any guarantees included, and experience in providing the majority of the product solutions that are likely to be involved, both before and after retirement.
“Therefore dismissing out of hand the potential benefits of including product providers as part of the eventual solution seems in our view to be short-sighted at best.”