Experts worried over new pensions guidance service
27/01/2015
Margaret Snowdon, a leading pensions expert, has claimed that the governments new pensions advice service “pensions wise” will not be properly staffed by the 6th April launch date.
Snowdon, who was awarded an OBE for service to the pension industry in 2010, spoke to the BBCs Radio 4 program. She said the Citizens Advice have left it too late to ensure staff have the right level of expertise to help guide people correctly on their pensions.
In October the Government announced that Citizens Advice would launch “Pensions Wise”, which would provide face-to-face "guidance" about pensions.
From April those aged 55 and over will have new freedoms to take their pension as a cash lump sum, with no obligation to buy an annuity. Anyone retiring on one of these new schemes can have free, impartial, face-to-face guidance on how to get the most out of the new freedoms. In total there will be 44 Citizens Advice offices offering the service, and there will be between three and seven members of staff in each office.
Snowdon said:
"This is so important. If people who don't understand pensions and don't understand much more than the people they are speaking to that's going to be so apparent and it's going to blow the service."
She then went onto say the minimum requirement for some people providing the guidance should have three years' experience plus a qualification.
Citizens Advice chief executive, Gillian Guy, said her organisation was not looking to recruit "pensions experts". The Treasury will be responsible for training as assessing staff
However Ms Guy, from Citizens Advice, said there was a "fundamental difference in the interpretation of what this service is. It's quite clearly been defined as guidance and not advice and it's not regulated advice".
She added that people receiving guidance at the bureaus offering it would be signposted to places where they can receive further advice.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
American Express suspends contributions to UK pension scheme
In a move which many people hope will not be replicated across the UK business sector, American Express has today announced that company contributions into the UK final salary pension scheme have been suspended. The U.S.-based giant has, like so many other financial companies, suffered during the recession and confirmed plans to stop matching employee contributions for the next 18 months, somethin...
Read MoreShould you continue to pay into your pension fund?
As the economic downturn in the UK continues to gather pace it seems as though everybody in UK is looking to save as much cash as possible for the tough times ahead. Many people are looking at their investments, their insurance policies and some are even looking at their contributions towards their retirement. But is it right to cut your pension fund payments at this moment in time?
...
Is one fund better than another?
It is extremely hard to judge how ‘good’ a pension fund is, because they are all individual and tailored by you. The best pension or investment funds should fit with your own personal exposure to the markets, whether they’re equities, fixed interest or property, amongst others. It’s about how comfortable you feel about investing in certain markets. So, we could have one person with 20%...
Read MoreCampaigners hail new pension scheme
A new pension rescue package has been welcomed by campaigners across the UK.As many as 140,000 workers are set to benefit from the new £2.9 billion rescue scheme that has been put together by work and pensions secretary Peter Hain to help those who have lost out after their companies went bust.Under the terms of Mr Hain's plan, 90 per cent of the value of those pensions will be restored, bringing...
Read More