Consumers confused over pensions, says consultant

Consumers have been left confused over the new pensions regime, a senior Investment consultant fears. Frazer Wilson, senior consultant at Thomas Miller Investment, has expressed concerns with how the situation for retirees has developed since the reforms kicked in earlier this year.His comments come hot on the heels of criticism from a consumer watchdog about the “low numbers” using the Government’s guidance service Pension Wise.The Financial Services Consumer Panel has told MPs the Government needs to be more transparent about how Pension Wise is performing.Mr Wilson said: “Although many providers have adapted to the new regime, plenty haven’t, leaving consumers confused about what their options and next steps should be. While guidance is offered to everyone at retirement, which is a step in the right direction especially for those with small pots, what if you require further advice and need to pay for it through a financial adviser?” {desktop}{/desktop}{mobile}{/mobile}Mr Wilson said: “The issue still remains that those with the larger pensions can mostly afford to seek advice, where as those with modest savings can’t, which is a problem and one that will continue unless addressed. We expect the amount drawn from pensions to plateau out over the coming months as individuals mull over whether they seek generic guidance and “do it themselves” or pay for professional advice. The fact remains that people require a level of financial advice regardless of the size of their pension.”The FSCP called for information on how often and by whom Pension Wise has been used to be published - ideally every quarter.Officials said this should include the number of sessions completed - both face-to-face and via telephone - as well as the mean and median pension pots of those who accessed the service.In a report to MPs, it stated: “The Pension Wise guidance service is essential to help people navigate the new pension freedoms, but it is not clear at present that it will lead to better outcomes for consumers.“The Government needs to be more transparent about how Pension Wise is performing, and what would be considered good outcomes. The panel believes it should regularly publish management information to show what proportion of eligible people is making use of the service. It also needs to conduct a thorough review to determine whether Pension Wise is leading to better outcomes for consumers.”

Consumers confused over pensions, says consultant

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