Pensions - Articles - Simplicity essential to success of Pensions Advice Allowance

 “Pension schemes will likely be keen for DC members to use the PAA so long as it does not increase administration costs significantly. Some schemes may decide not to offer it with the result that the PAA will not actually be available to everyone.

 “The Government has acknowledged that face to face advice could cost more than double the PAA at around £1300. Large employers and schemes could potentially negotiate lower rates for advice for their members from one firm of advisers. This would help not only with concerns around fraudsters taking advantage of members but also with consistency of advice for members of the same scheme.

 “The success of the PAA may depend not only on how simple it is to operate from an administrative perspective but also on how well other pensions education measures recommended by the Financial Advice Market Review succeed in demystifying the retirement process.”