The number of people accessing free guidance appointments via Pension Wise rose 23% last year, however figures from the Financial Conduct Authority have shown that half of those accessing their DC pension pots for the first time are doing so without guidance or advice.
With unemployment and financial stress rising as a result of the Coronavirus pandemic, we can expect to see a significant rise in people accessing their pensions for the first time when the figures for 2020/21 are published.
Not only are people at higher risk of running out of money in their retirement by not seeking advice, they are also putting themselves at higher risk from scams.
Earlier this year Pension Wise said its users are more likely to consult a financial adviser following taking guidance from them so it may well be in the industry’s interests to champion the service.
The pensions and advice sector needs to work together to help communicate the benefits of independent advice with consumers if we are to increase engagement to the levels necessary to increase public confidence in pensions as a system.
Brandon Consulting Services Ltd 