Research has indicated that under a quarter of over-55s find the existing pension guidance service useful.
According to MetLife, 23% of respondents claimed that the Pensions Advisory Service had been useful, suggesting that changes in the current system are required.
In regard to retirement planning and pension freedom, Pension Wise was found to be useful for 16% of respondents, whilst 40% of savers claimed that they are not looking for any advice or guidance on their pension options.
The research corresponds with the appointment of Guy Opperman, the new Pensions Minister. His role will involve bringing together three advisory services – Pension Wise, The Money Advice Service and The Pensions Advisory Service – and creating a single organisation.
In streamlining the services, the government aim to improve access to guidance – something which could reduce other issues highlighted in the study.
One particular challenge was the distinct lack of new product development since the 2015 launch of the pension freedom. 71% of over-55s stated that they wanted a greater range of choice when it came to sourcing retirement income, whilst just under three-quarters (74%) of advisers are highlighting a need for greater innovation to address risks in volatility.
Meeting the need for income in retirement was seen as the biggest issue for advisers, with two-thirds claiming that it was the greatest obstacle.
Commenting on the research was Simon Massey. The Wealth Management Director at MetLife UK stated: “The issues that worry consumers the most include minimising tax bills and ensuring that their money does not run out in retirement.
“The concern for savers relying on drawdown is that funds and income can reduce as a result of investment market volatility or overspending which is where guidance and advice can provide vital support.
“The new Pensions Minister has a wide range of issues to tackle but top of the agenda should be providing a guidance service which can build on the successes of the past two years and help deliver real pension freedom.”
