There is widespread support for government proposals to provide free retirement guidance but more than half of over-55s think it should come from an independent, consumer body.
Chancellor George Osborne announced plans at the 2014 Budget to guarantee all retirees with a defined contribution pension “free, impartial face-to-face advice”.
Retirement “advice”, which is regulated, was quickly replaced with “guidance”, which may be unregulated, subject to the final rules.
A survey by LV= found that 80% of respondents supported the proposals, due to take effect from April 2015.
However, the responses revealed a lack of faith in pension providers to give impartial, trustworthy guidance.
The survey of more than 2,000 people aged over 55 found:
- 78% support free pensions savings guidance for those approaching retirement
- 52% would accept guidance from an independent, government-backed consumer body
- 48% would act on guidance provided by an independent body
- only 17% would choose a guidance session offered by their existing pension provider if given the choice
- just 19% would act on guidance provided to them by their pension provider