Pensions: Advisory Services

(asked on 5th July 2016) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he is taking to increase the take-up of advice by people accessing pension freedoms.


Answered by
Justin Tomlinson Portrait
Justin Tomlinson
This question was answered on 11th July 2016

The Government is working to improve access to affordable pension advice. As recommended by the Financial Advice Market Review (FAMR), we intend to consult on introducing a Pensions Advice Allowance over summer 2016. This would enable individuals to withdraw up to £500 tax-free from their defined contribution pension pot to redeem against the cost of financial advice, before the age of 55.

The Government will also increase the current £150 tax and National Insurance Contributions relief for employer arranged pension advice to £500 from April 2017. It would therefore be possible for those who are able to use both to access up to £1000 of tax-advantaged advice.

In addition the Government pension guidance service; Pension Wise, flags when there is a legal requirement for an individual to take advice, but also encourages people to seek advice when taking any important financial decisions.

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