Savers still unable to access Pension Wise guidance
23/03/2015
Savers are still unable to access free, face to face guidance from the Pensions Wise service, experts have warned.
With only a few weeks left before the new pension regulations come into place, many retirees have been unable to access the impartial advice sessions they offer. The phone line to book face to face sessions from Pensions Wise has not yet been opened, and many savers will be left in the dark about whether they should cash in their pensions savings or purchase/keep an annuity.
Also, all of the employees working for the Pensions Wise service have not yet been recruited.
A spokesperson for the Treasury, who are helping to provide the service, said the service is still entirely on schedule:
"We have been piloting sessions of the Pension Wise service and gathered feedback from users and guidance specialists in order to ensure it is as good as possible for when the pensions freedoms come into force in April.
"People will be able to begin booking their telephone and face-to-face appointments in the next few days.
"People should remember, though, that 6 April is not a deadline; they have plenty of time to seek the right guidance and advice of these important decisions."
Concern has been expressed about the new pension reforms, which mean that people will be able to access the entirety of their pension pots. At the moment, most people with pension savings have used them to buy an annuity, giving an income for life. A lump sum of cash which is withdrawn from a pension will be treated as an income and will have the same tax implications, which may leave pensioners with a much bigger tax bill than expected.
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
Sir Fred Goodwin rejects calls for pension reduction
Sir Fred Goodwin has today rejected new calls for a reduction in his £700,000 a year pension after shareholders unanimously voted against the RBS remuneration report. While the vote by shareholders is not legally binding and cannot directly affect the pension paid out to Sir Fred Goodwin, it has given shareholders the opportunity to express their anger.
Ahead of today's AGM it was...
Are employees fighting for their final salary pension schemes?
With speculation that Barclays bank is set to increase the incentives on offer regarding the potential closure of the company's final salary pension scheme, there is a feeling that employees and their unions, are starting to fight back against the closure of final salary schemes across the UK. This area of the pension industry has been a bone of contention for some time with many companies struggl...
Read MoreWill final salary pension schemes ever disappear from the public sector?
Despite repeated warnings from various associations in the UK, it would appear that the UK government is still charging headlong into a potential pension fund nightmare with more and more public sector final salary pension schemes in deficit. Only yesterday we saw the revelation of a £60 billion black hole in local authority pension schemes which UK taxpayers will be forced to bail out. So will f...
Read MorePension gap continues to grow between private and public sector
The Office for National Statistics has revealed an alarming expansion in the gap between private sector and public sector pensions which is set to continue for some time to come. It was revealed that the number of active members of private sector pension schemes has fallen by 100,000 since 2008 and now stands at 2.6 million. During the same period the number of members of public sector pension sch...
Read MoreUnions ready for battle to save public sector pensions
Unions in the UK are today positioning themselves for a major battle with the UK government in relation to public sector worker pensions. A report into the public sector pension situation is likely to see public sector workers facing an increase in pension contributions, the retirement age extended to 65 and possibly a switch to an average career earnings figure as opposed to a final salary earnin...
Read More