Govt’s Pension Wise service could face capacity issues – Aegon

Pension Wise may face capacity challenges to cope with a surge of new “stronger nudges”, Aegon has stated.

Aegon also suggested that scams referrals from pension schemes and providers may also prompt individuals to seek the government’s Pension Wise guidance.

As a result of new government regulations in the Pension Schemes Act 2021, both the FCA and DWP have been consulting on new requirements which will mean individuals can’t access their defined contribution pension flexibly or transfer to do so, unless they have first taken guidance from Pension Wise or formally opted out from doing so.

The DWP consultation closes today following the FCA’s consultation which closed in June.

Aegon pensions director, Steven Cameron, commented: “Some individuals will perceive having to seek Pension Wise guidance as delaying them being able to access their pension funds. This makes it imperative that Pension Wise can cope with demand for appointments, within one or at most two weeks.

“To avoid wasting member or Pension Wise time, it will be important not to nudge individuals to Pension Wise where there’s no benefit. Aegon sees no point in this nudge if the individual is already receiving advice, which will give far more comprehensive support.

“There’s a case for excluding micro pots of under say £100. Unnecessary appointments will not only increase the burden on Pension Wise but will also mean additional costs for the pensions industry which funds the service.

“We must also avoid those accessing multiple pension pots ending up with repeat nudges or multiple appointments.”

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