Pension Wise

Pension Wise

Pension Wise is a service in the United Kingdom offering guidance for people regarding pension freedoms introduced in the 2014 United Kingdom budget.[1] Under these changes those with a defined contribution pension scheme will no longer be forced to buy an annuity. Instead they will be allowed to take as much or as little from their pension pot as they wish to invest or spend themselves. The Independent have described this change as the biggest change to pensions in nearly a century.[2] Citizens Advice offices are used to give face-to-face advice and telephone advice will come from the The Pension Advisory Service.[3]

Responsibility for the service was initially under HM Treasury but will move to the Department for Work and Pensions in March 2016.[4] Citizens Advice and the Pensions Advisor Service were commissioned to provide the service[5] and will be responsible for any redress in respect of financial loss resulting from the guidance.[6] The cost of establishing and supporting the service in its first year is £35M.[7] The Pension Wise website has been criticised by the Work and Pensions Select Committee[8] as has the low take up of Pension Wise appointments.[9] The Equity Release Council have recommended that Pension Wise be extended to allow advice on equity release.[10]

See also

References

  1. ↑ "Pension Wise". Citizens Advice. 2015-04-06. Retrieved 2015-10-24.
  2. ↑ Oliver Wright. "Budget 2014: George Osborne unveils major pensions and savings shake-up | UK Politics | News". The Independent. Retrieved 2015-10-24.
  3. ↑ "to deliver Pension Wise from more than 500 locations". Citizens Advice. 2015-03-09. Retrieved 2015-10-24.
  4. ↑ "Economic Secretary to the Treasury announces next steps for Pension Wise". gov.uk. 16 September 2015. Retrieved 24 October 2015.
  5. ↑ Jones, Rupert (12 January 2015). "Pension shakeup could see £6bn withdrawn, experts say". The Guardian. Retrieved 24 October 2015.
  6. ↑ Reichman, Carmen (3 July 2015). "FCA: Pension Wise providers liable for guidance guarantee redress". Professional Adviser. Retrieved 24 October 2015.
  7. ↑ Broadbeck, Sam (8 October 2015). "Pension Wise staff redeployed amid low take-up". Money Marketing. Retrieved 24 October 2015.
  8. ↑ "MPs warn of potential mis-selling scandal over new pension freedoms". The Guardian. 19 October 2015. Retrieved 24 October 2015.
  9. ↑ http://www.publications.parliament.uk/pa/cm201516/cmselect/cmworpen/371/37107.html
  10. ↑ http://www.out-law.com/en/articles/2015/october/extend-pension-wise-remit-to-cover-equity-release-says-trade-body/

Further reading

External links

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