Free impartial pensions advice coming next year

Wednesday, 27/08/2014

Are you confused about your pension? Chances are, you're probably not alone. Luckily for all of us, free impartial advice will be available from next April, so you can be sure you're making the most out of your retirement savings.

Everyone with defined contribution pensions will be eligible for the guidance, which will come from a variety of independent organisations, such as the Money Advice Service (MAS) and The Pensions Advisory Service (TPAS).

The government revealed the changes as an introduction to a 'radical shake-up' of the pensions market as a whole, and follows concerns expressed by consumers about who to trust when it came to organisations trying to sell a financial product or service.
According to the government, pension providers will have to ensure savers are informed about these new services, so they can get help in making the best choice for their future.

Changes

The reforms come into play next April (2015) and will allow 300,000 people each year unfettered access to their pension pots when they hit 55, meaning they can pretty much do what they like - subject to tax.

You'll also still be able to transfer private sector pension and benefit schemes to defined contribution pension schemes if you wish, as long as you get advice from an impartial financial adviser before taking any action.

According to the Treasury, a grand total of 18 million people could benefit from the pension shake-up, which is all about ensuring people have adequate support when it comes to making important financial decisions regarding their future.

Chancellor George Osborne recently released a statement which said: "We're making sure that people have the right support to make their own choice about how best to finance their retirement and I'm pleased to confirm that everyone with defined contribution pension savings reaching pension age will get free and impartial guidance on their range of available choices at retirement."

The hope is that the industry will receive the necessary push to begin developing products that people will benefit from, not organisations - sounds good to us!

If you're currently in need of pensions advice, you can contact The Pensions Advisory Service (TPAS) by filling out an enquiry form or calling the national helpline: Pensions Advisory Service

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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk