Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if the Government will take steps to ensure that people who cannot afford or choose not to access financial advice on how to invest a lump sum taken from defined contribution pension plans are able to make appropriate decisions that ensure financial security throughout their retirement.

Pension Wise provides free and impartial guidance on what consumers can do with their pension pots, helping them make a decision which best suits their personal circumstances. The guidance encourages customers to think about how they can best provide for themselves in the future, and prompt them to think about how long their money needs to last.

Pension Wise helps people understand when professional investment advice could be useful and how to access it by referring them to the Money Advice Service’s new Retirement Advisor Directory. The Directory helps people find a local advisor which serves their pot size, can provide a specialist type of retirement advice service, and displays information on whether they charge a minimum fee.

The government believes that it is vital that consumers should have access to professional financial advice if they need it, and supports the work of the Financial Conduct Authority (FCA) to encourage the development of affordable models of advice to help service this need.