Pension Wise

The government has created more choices for pension income, which came into force on Easter Monday. To help individuals with these choices, they have introduced guidance in the form of Pension Wise.

The guidance will be provided in April 2015 and will be delivered by independent organisations, including The Pensions Advisory Service (TPAS) and Citizens Advice. This will be paid for by a levy on financial companies such as ourselves. Interestingly, the advisers do not need to have any pensions experience to take this role.

Pension Wise intends to provide guidance on the many ways and choices in how you draw benefits from your pension. The guidance will give tailored help, and highlight the options available to you however it does not give specific product or provider recommendations. Only regulated financial advisers are permitted to do this.

This is guidance only as throughout the brief, individuals are referred to taking advice from an Independent Financial Adviser. Pensions have always been complex animals and the introduction of the flexi pension complicates matters further particularly in relation to the taxation of benefits and what happens to your pension when you die.

I see therefore the primary benefit of Pension Wise is the communication of pension information which should have always been available in its concise format. A prospective client when recently discussing her pension benefits with me, suggested she wait for Pension Wise to ascertain what free advice she could gain and it is now quite clear that advice is not available.

I would welcome my readers to comment and let me have details of their experiences of Pension Wise.