Retirement Advice Flawed, say Pension Providers

The new guidance gurantee offered to all workers on retirement from April next year should be paid for by the government not the industry, says MGM Advantage

Emma Wall 23 September, 2014 | 12:17AM
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Consumers are entitled to free advice on retirement from next April, to help them navigate the new pension reforms announced in March’s Budget.

From April next year no one will have to buy an annuity, but with these new pension freedoms come responsibility and so the Government has tasked the advice industry with providing free guidance to all retirees known as the ‘guidance guarantee’. The cost of these one on one consultations is as yet unknown, but the pensions industry has hit back saying the proposals do not allow providers enough time to set up the system.

Five ‘fee blocks’ of company groups will be responsible for funding the optional guidance, including pension providers, advisers, investment management companies and insurers. General insurers and home finance providers will not be levied to pay for the guidance.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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