23% would trust advisers for guidance guarantee

Nearly a quarter of over 55s would trust professional financial advisers to provide the retirement planning service pledged in the Government's guidance guarantee, a survey suggests. Research by MGM Advantage found 23% of respondents would be happy to get their guidance from an adviser, while the clearest message was that it should be impartial and independent from pension providers.Some 83% said this was must be the case, while 24% would trust an existing organisation like The Pensions Advisory Service to provide the service.Just over a fifth said they preferred a new independent financial organisation to be set up to provide the service.Only 12% of respondents suggested they thought they could trust their existing pension company to provide such a service.Andrew Tully, pensions technical director at MGM Advantage, said: "As the industry debates the pros and cons of the new guidance service, it seems trust will be crucial in making it work effectively."What comes across strongly is the overwhelming number of people from all age groups who thought the service should be impartial and independent from pension providers.{desktop}{/desktop}{mobile}{/mobile}"This is important because we are building a service not only for the retirees of today but also for future generations."While guidance can help understanding and narrow down options, it is also crucial there is a clear hand-off to financial advisers when necessary."Michelle Cracknell, chief executive of The Pensions Advisory Service, said: 'The guidance service being launched as part of the Budget is a big opportunity for us to win over the 'hearts & minds' of people so that they become more engaged in planning for their retirement."We know from our helpline that people struggle with retirement decisions. An independent organisation like TPAS provides a great bridge between people receiving information from their providers and the next steps that they need to make, which may include finding a financial adviser."

23% would trust advisers for guidance guarantee

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