Government aims to ban pension cold calling “as quickly as possible”
The Government has expressed its aim to push through the pension cold calling ban “as quickly as possible”.
Responding to the report from Work and Pensions and Select Committee which sought to amend the Financial Guidance and Claims Bill,the government expressed their agreement with the aim to find a more effective way to ban pension cold calling.
In addition, the Committee also proposed amendments to the Bill which would require individuals to be given or explicitly refuse guidance before they would be permitted access to their pension pot. The government agreed with this recommendation, but also acknowledged the purpose of the pensions dashboard, which aims to streamline savers’ accessibility to information on their pension. It also expressed its aim to build awareness of the Pension Wise service.
Commenting on the response to the report was Tim Gosling, Policy Lead for Defined Contribution at the Pensions and Lifetime Savings Association. He stated: “Free and impartial guidance is a critical piece of the retirement puzzle and it will go some distance to getting savers the outcome they deserve but we do not believe guidance will be enough on its own.
“The vast majority (84%) of retirees tell us they want an income from their pension savings. But there is no easy or obvious way for retirees to find a good quality income product for those who cannot or choose not to engage with complex financial choices. We think that trustees should be able to select an appropriate income product, which meets Government standards, and signpost their members to it.
“Of course, retirees would be free to disregard this steer and make their own choices but providing clear signposting would help those who might otherwise have struggled to make a decision.”
The reponse to the report can be found here.