Pre-retirement pensions advice vouchers proposed

Pension savers could receive advice vouchers to encourage a greater uptake of advice prior to retirement, Royal London director of policy Steve Webb has proposed.

Speaking at the House of Commons Work and Pensions Committee meeting on Wednesday 1 November, the former Pensions Minister suggested advice vouchers for employees could be a way to get savers “through the door” to take advice.

“Adivce is valuable, advice is generally well received by those who take it, but people don’t value it, people don’t appreciate it. And so we need to get people through the door of advice, and I think we could launch a pilot of advice vouchers,” Webb said.

Webb explained that savers could receive their first advice voucher for free, in order to have an initial consultation and then enable consumers to assess its worth and whether they would like to pay for more sessions.

“If they don’t want it, that’s fine, if they realise it’s valuable to them, we’ve got them through the door,” Webb explained.

When asked who would run such an initiative, Webb noted that he believes it should be run by both the government and industry together.

Also on the panel in the meeting, Nest chairman Otto Thoresen supported the need for sustained pensions advice at more than one point in an individual’s life. “Advice advice should be attained on many points along the pension savings and transfer journey,” he said.

ABI assistant director, head of retirement policy Rob Yuille agreed: “Better access to advice and guidance is key, but it needs to continue throughout retirement.”

Moreover, Webb echoed the view that advice needs to be encouraged much earlier than retirement, as it may be too late when reaching retirement age. “Pointing to guidance needs to be earlier when people haven’t made their mind up and the guidance can help shape it. Encouraging Pension Wise appointments prior to consumers deciding on cash withdrawal options, for example.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.