Pensions - Articles - Pensions Wise complaints should be heard by financial body

 Rona Train, Senior Investment Consultant, at Hymans Robertson, says:

 
 “We’re surprised that complaints regarding this new service will not be heard by a specialist financial services body. The new flexibilities mean a proliferation of options for retirees. With choice comes complexity. There needs to be more support given to those retiring from April to allow them to make the best of their new found freedom. There also needs to be adequate protection for individuals around the quality of the guidance given.
 
 “The focus has been on helping people at the point of retirement with initiatives such as Pensions Wise – arguably this doesn’t go far enough. We also need to turn our attention to those from age 55+ that haven’t retired but who may start drawing on their pension funds, as well as those in retirement who may begin eating through savings without help from an adviser.
 
 “There is a real danger that the moment of truth will emerge after individuals have been withdrawing too high an income for many years. Designing efficient communication and ongoing support for these retirees will be crucial.
 
 “However, support comes at a cost and not everyone is willing to pay for it. As such, the need for low cost online tools that guide individuals towards the optimal options for them, and to have such tools in place from at least 10 years before retirement, could not be greater.
 
 “The focus so far has been on guidance for DC members. It’s also worth pointing out that there are also around 10m people with DB benefits who are yet to retire (and whose choices are arguably more difficult) who can also take advantage of the freedoms. They also need adequate guidance. Online tools also have a role to play here.”