Regulated advice can prevent huge mistakes at retirement

25th March 2015

The brand behind the Guidance Guarantee – the new pensions guidance service has been unveiled as ‘Pension Wise’. It will offer free and impartial information and guidance to people aged 55 and over with a defined contribution (DC) pension,  in order for them to make the most of the new pension freedoms coming into force from April this year.

The FCA said providers will ‘be required to ask consumers about key aspects of the circumstances that relate to the decision they are making about their pension pot’. It continues, ‘Providers will be required to give relevant risk warnings, such as warning of the tax implications of their decisions, in response to answers from consumers. Firms must also further highlight the availability of the Government’s new Pension Wise scheme or regulated advice’.

Jonathan Watts-Lay, Director of WEALTH at work discusses the topic with The Mail on Sunday and comments, “This is a response by regulators to worries that people could make bad decisions.”

Although it’s great news that more people will be able to access pension information and guidance through Pension Wise, it can’t tell you what is right for you and if you go ahead with your retirement plans without receiving regulated advice, then you won’t get the same level of consumer protection.

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Further coverage can be found in This is Money.