On the go: The Department for Work and Pensions plans to require providers of workplace pensions to signpost guidance whenever savers look to access or transfer their pots.
The government published on Wednesday a statement of policy intent, which stated that future regulations will require trustees and managers of occupational schemes to present taking pension guidance as a “natural” part of the process when looking to access or transfer a pension.
At the point in which a saver indicates they would need to take guidance, providers will be expected to incorporate booking an appointment with Pension Wise into the process.
According to the DWP, these proposals follow successful trials, which found people were more likely to get guidance when their provider explained the nature and purpose of Pension Wise and booked an appointment on their behalf.
Pensions minister Guy Opperman said: “I want taking guidance to become a natural part of the journey savers embark on when making decisions about their pension pots.
“These measures will advance the government’s goal of ensuring that people have the necessary support and information to make informed choices about their financial futures.”
As well as encouraging people to use Pension Wise, the DWP said these proposals will help protect savers from scams as they will be able to make more informed decisions.
According to David Fairs, executive director of regulatory policy, analysis and advice at the Pensions Regulator, the new rules from DWP are “another key step to help ensure savers make informed retirement choices by using the free guidance available from Pension Wise”.
He added: “We will be introducing guidance for trustees to help implement the measures so that seeking guidance becomes the norm for pension savers when planning for the future.”
This article originally appeared on ftadviser.com
