Government must improve Pension Wise guidance

Automatic appointments with the Pension Wise service should be trialled as part of a renewed commitment from the government to support people to make better decisions in retirement.

In a report on accessing pension savings  the House of Commons work and pensions committee concluded that although the extra freedoms introduced in 2015 have on balance been a success many savers need more support than they currently receive.

During its inquiry the Financial Conduct Authority said consumers describe pensions as a ‘minefield’ with even those who felt financially confident in other aspects of their lives struggling to understand how pensions work.

The report recommends that the government should set a target of at least 60% of people using its Pension Wise guidance from the Money and Pensions Service or receiving paid-for advice when accessing their pension pots for the first time. At present 14% of...