The government has confirmed that the guidance for people negotiating the new retirement freedoms will be called ‘Pension wise’.
‘Pension wise’ guidance
The new guidance for people on pensions, previously known as the ‘guidance guarantee’, will be branded ‘Pension wise: Your money. Your choice’ with an accompanying logo.
From April 2015, over 300,000 individuals a year with defined contribution pension savings will be able to access them as they wish from when they turn 55.
The creation of Pension wise follows the announcement by Chancellor of the Exchequer George Osborne in the summer that the government will provide access to free and impartial guidance on how to make the most of the new pension freedoms, which come into effect in April 2015.
The government’s delivery partners are Citizens Advice (England and Wales), Citizens Advice Scotland and Northern Ireland Association of Citizens Advice Bureaux and The Pensions Advisory Service.
Which? has already launched a guidance guarantee guide to help you get the most from the service.
Help to make informed choices
The service will be available online, over the phone or face-to-face. From today, anyone with a DC pension who is approaching retirement and would like the chance to access the service as part of Pension wise’s piloting activities can register their interest at www.gov.uk/pensionwise.
The intention is that people using the new service will be provided with a summary sheet to assist them in making a confident decision on what to do with their pension pot.
Economic Secretary to the Treasury Andrea Leadsom said: ‘People who have worked hard and saved all their lives will be free to choose what they do with their money from next April.
‘We want people to be empowered to make informed and confident choices and I’m delighted to announce Pension wise: Your money. Your choice as the brand name for the impartial guidance service we are building.’
Beware of scams
At the same time, the government will try to prevent scams by making imitation of Pension wise illegal through the Pension Scheme Bill, potentially prosecuting anyone passing themselves off as the service.
A campaign was launched last week by the Pensions Advisory Service (TPAS) and the Association of British Insurers (ABI) designed to raise awareness of the dangers of pension scams and provide some tips to help consumers protect their financial future.