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Restructuring Pension Advice

The Government has announced a restructure of its pension and money advice services. In a move which looks to provide a single point of contact the Money Advice Service is to be merged with the Pensions Advisory Service and Pension Wise.

The transformation won’t be instant; the initial decision will now be subject to review and consultation in order to optimise the format for the new body. Commenting on the announcement Simon Kirby who is the Economic secretary to the Treasury said “We strongly believe that creating one public guidance body is the best way of making it as easy as possible for people to access the help they need to get their financial questions answered.”

Certainly there is some evidence that a review on pension advice may be of benefit to consumers. In a recent report the TUC commented that over 80% of those using their pension pot to buy a retirement income in the first year following the introduction of pension freedoms received no advice in respect of their decision. Their analysis revealed that just 15% of those setting up a drawdown policy received professional financial advice. This contrasts with 73% of those opting for an annuity who did consult a financial adviser first.

We strongly recommend that before making any decisions regarding your Pension Plans, you take independent financial advice from an authorised firm. If you’re looking for advice on your pension, or if your situation has changed and you may therefore need to review your existing pension plans, contact Beckworth by using one of the links on our website