Planning For Retirement Not Helped By Uncertainty With Little Confidence That Pensions Advice Guarantee Will Be Met Before April Deadline Says GMB
This promised 'Guidance Guarantee' is going to be crucial and we feel this is being overlooked by the Chancellor in his pursuit of headlines for the policy says GMB.
GMB commented on the publication on Tuesday 14th October of the government’s Taxation of Pensions Bill.
Phil Mc Evoy, GMB Pensions Officer, said “The publication of this Bill confirms that this is policy making on pensions on the hoof. It ignores the need for consensus building. It is difficult to see how this continual tinkering is adding clarity for those coming up to retiring, or for the industry charged with guiding them.
Osborne promised to introduce a new guarantee, enforced by law, that everyone who retires on these defined contribution pensions will be offered free, impartial, face-to-face advice on how to get the most from the choices they will now have.
This promised 'Guidance Guarantee' is going to be crucial and we feel this is being overlooked by the Chancellor in his pursuit of headlines for the policy.
A survey yesterday showed that 92% of those eligible for the reforms would take up Guidance Guarantee. The Pensions Advisory Service, who the government have charged with supplying guidance, are predicting a 20% take up whilst saying they would 'love 50% but that would create lots of hard work'. This indicates that the industry has little idea of the extent of pension’s guidance requests and may be indicative of confusion around what will be needed.
With less than 6 months to go before this flagship policy is introduced, savers and professionals are crying out for some certainty. The last thing the UK needs is yet another pension’s scandal, and the prospect of poorly informed savers being bamboozled by pensions products could result in this.”
Contact: Phil McEvoy on 07918 768 773 or 020 7391 6700 or GMB press office 07921 289880