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

Pension freedoms receive Royal Assent; the industry responds

Written by:
Yesterday, George Osborne’s pension reforms received Royal Assent; the Pension Schemes Bill is now officially an Act.

The Bill also set out a number of provisions for Pension Wise, the free official pension reform advice service.

Numerous industry figures and commentators have responded to the news. Andrew Pennie of Intelligent Pensions noted that the Act was “an important stepping stone” to introduction on 6 April, which provided “the necessary ingredient of the guidance guarantee.”

While stating his belief that Pension Wise would offer “valuable guidance to thousands”, helping new retirees “understand their options”, Pennie acknowledged that the service “will not be working perfectly from day one” – but forecasted it would become “a key component of the advice process” in time.

However, he also voiced concerns that guidance and support is being focused on those “at the point of retirement”, and believes the provision “needs to be widened.”

“People need more help in the years approaching retirement to select the correct pre-retirement investment strategy to meet their needs and objectives,” Pennie concluded. “Standardised approaches in pre-retirement years are no longer suitable; everybody’s retirement will be different A more personalised approach is needed if we are to see significant improvements in retirement outcomes.”

Joanne Segars, chief executive of the National Association of Pension Funds, welcomed the Act, and stated that the reforms “have the potential to bring real benefits to savers.”

However, Segars also noted that there is “still uncertainty amongst the public about what they should do to make the most of the opportunities.” She believes that the government “should waste no time in providing the missing pieces of the puzzle”, as there were only “23 working days to go.”

“It is vital government ensures all communications to savers are realistic, so they can make solid plans for retirement and avoid disappointment,” Segars concluded.

Claire Trott of Talbot and Muir said it was a “shame we have had to wait this long for the legislation to be enacted.” However, Trott also welcomed the “thorough review” the Bill had received in Parliament, as “legislation rushed through” often “makes it difficult for providers and advisers to deal with the changes”, and “uncertainty makes it difficult to accurately and confidently give answers.”

She went on to forecast that advisers “will be getting a lot of questions from their clients on the changes”.


Related Posts

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.

5,000 Lloyds current account holders to receive £200 bonus

Lloyds Bank will randomly select 5,000 current account customers to receive a bonus £200 payment to help with...
5,000 Lloyds current account holders to receive £200 bonus

NS&I to delay phasing out of Premium Bonds prize warrants

National Savings and Investments (NS&I) is postponing the phasing out of Premium Bonds prize warrants unti...
NS&I to delay phasing out of Premium Bonds prize warrants

Savings rates carnage: Six alternatives to holding cash

The pandemic has seen many people have more cash to save than normal. But with savings accounts paying paltry...
Savings rates carnage: Six alternatives to holding cash

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

Read previous post:
Ideas for the ISA season: Lump sum or regular contribution?

As the clock counts down to 5 April, investors will be urged to use their current £15,000 2014/15 ISA allowance...