The FCA wishes to ensure consumers have the right level of advice regarding their pension to help them make informed decisions
New measures will be put in place which will help encourage hundreds of thousands of Britons to seek guidance on their pensions before accessing their funds. The changes are designed to help Britons make informed decisions regarding their retirement.
It is believed the changes, which have been set out by Parliament, are aimed at increasing use of the Pension Wise service.
The Financial Conduct Authority (FCA) wishes to ensure consumers have the right level of advice and guidance regarding their pension to help them make informed decisions.
Sarah Pritchard, FCA executive director for markets, said: We want to make sure people get the guidance and advice they need to secure the best retirement possible.
Pension Wise was first set up in 2015 as a way to help savers make decisions about their retirement income options.
This was done as a response to pension reforms which gave people the freedom to draw their money whenever they saw fit.
Anyone who was enrolled on a pension scheme which offered an unqualified right to a minimum pension access age of 55 before November 4, 2021 will have retained their right to draw their pension at this age without penalty.
Stephen Lowe, director at retirement specialist Just Group, believes the Government needs to stop rationing the Pension Wise service.
He said: It’s very hard to get excited about the new ‘stronger nudge’ rules when the evidence shows it is only going to have a marginal effect. What is needed is an intervention that gets people using the Pension Wise service earlier, before they call their provider to ask to take out pension cash, and one that delivers a far greater rise in numbers than the nudge.
He said: Calls for a small trial of a system that automatically books guidance sessions for key groups from age 50 have fallen on deaf ears despite it being the most credible idea to boost guidance use. Government needs to stop rationing the Pension Wise service and take the only big idea on the table and run a trial.