You are here: Home - Retirement - Retiring now - News -

Citizens Advice: Guidance guarantee not a one-off event

Written by:
The guidance guarantee should be delivered as a process with various touch points not a one-off token conversation, the chief executive of the Citizens Advice Bureau has said.

Gillian Guy told MPs at a Treasury committee hearing on Wednesday it would “not be satisfactory” for the government’s guarantee of free impartial guidance at the point of retirement to be “for people to just go an get some advice”.

“We don’t think guidance happens at one moment under the guidance guarantee, it has to happen much earlier and also carry on after the event so people don’t feel they have been abandoned to their choice,” she said.

“We’d want to get in as quickly as we can.”

Recognising the “massive risks at hand” which stem from the Chancellor’s opening up of the retirement market, Guy said it was imperative the guarantee was delivered by an independent organisation.

The government has already pointed to the Money Advice Service and The Pension Advisory Service as guidance deliverers.

Guy said the Citizens Advice Bureau would be also capable of doing the job, although it would need to stock up on resources first.

Earlier in August it emerged the organisation has revived its joint pro bono advice scheme with the Personal Finance Society (PFS) and plans to roll out the free service across 100 of the organisation’s branches with the “capacity to expand further”.

“There is a logistical issue that we need to get sorted very quickly as to who is going to be providing what under the guidance guarantee so that we can gear ourselves up. We ought to be piloting from next month I would say.”

She added her organisation is well versed in making clear to consumers the difference between guidance and advice.

Labour MP for Erith and Thamesmead Teresa Pearce said she was concerned consumer detriment would be even bigger if a new misselling scandal develops on the back of the pension reforms and auto enrolment, as it would “put people off the whole idea of saving and pensions”.

Guy said: “There is a real role for whoever does give this guidance guarantee to be vigilant about the products that are coming forward because they will be the eyes and ears on the ground. And we need to be putting pressure on the regulator to ensure that is taken account of.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Why NS&I may need to trim interest rates for millions of savers

Savers continued to plough money into National Savings and Investment (NS&I) in April, though at a slower...
Why NS&I may need to trim interest rates for millions of savers

NS&I makes it easier to top up Premium Bonds

NS&I has started rolling out an alternative way to make payment, which should make it easier and more secu...
NS&I makes it easier to top up Premium Bonds

How to get 9% interest without tying up your savings for years

You don't have to lock your money away for years to get above-average returns on your savings.
How to get 9% interest without tying up your savings for years

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week