Savers are struggling to navigate the “pensions minefield” and need more support to make well-informed decisions, according to MPs.
A target should be set of least 60% of people using Pension Wise or receiving paid-for advice when accessing their pension pots for the first time, the Work and Pensions Committee urged.
It said Government and regulators must “end their timidity” to help savers avoid making poor decisions and in some cases ending up as victims of pensions scams.
Pension Wise helps people aged 50 and over to make sense of their options, offering free, impartial guidance.
The committee said: “We recommend that the Government sets a goal for the Money and Pensions Service for the combined use of Pension Wise and paid-for advice when accessing pension pots for the first time.
“This goal should be at least 60% and expressed in terms of individuals rather than pots. It could include an exemption for smaller levels of saving.”
The committee added that automatic appointments with Pension Wise should be trialled, to help support people to make better decisions.
There should be one appointment when a person accesses their pension for the first time and also one at the age of 50, before they can access their pension savings, the committee suggested.
The pension freedoms, introduced in 2015, give people a much wider range of choices over what to do with their pension, rather than being required to buy a retirement annuity.
The Committee said that,…
