09 Jun Pension advisory services to be merged
It was announced as part of the Queen’s speech that the free and impartial pensions guidance service, Pension Wise, is to be merged with the Pension Advisory Service and Money Advice Service. The three money advice services will be merged into a single UK-wide body.
Commenting on the merger, LITRG chairman, Anthony Thomas, said:
'Advice on money matters has previously been delivered in penny packets by bodies specialising in discrete areas, sometimes not well integrated with other areas which can affect financial decisions. In particular the interaction with tax and benefits can have major and long-term effects, often unforeseen at the time of the decision, and those without professional representation can be hard-pressed to find the necessary information and knit it together to find the best course to take. After all, decisions about pensions are taken at a time when a person may yet have 20 or 30 years of non-working life to plan for.'
The legislative changes necessary to create a single UK-wide pensions guidance body will take some time and the government expects that the earliest date that the new merged body will take effect is April 2018.
The Pension Wise service currently provides help via a website, over the phone and face to face. The main advice the organisation provides focuses on what a person can do with their pension pot, the different pension types and how they work and what’s tax-free and what’s not.