More than 150,000 seek guidance from Pension Wise, but huge gaps remain

In response to a parliamentary question from shadow pensions minister Jack Dromey, to Guy Opperman, minister for pensions and financial inclusion, revealed the latest statistics for Pension Wise – which is now part of the Money and Pensions Service.

The figures show that 90,448 people had face-to-face interviews at the government-backed service, with a further 39,667 having telephone appointments. A surprisingly low 37,611 had digital guidance in 2018-19, even though it was only introduced in 2017.

Despite the fact that numbers have increased, there is a long way to go before all retirees, often with pension pots more valuable than their homes, receive advice or guidance.

From October 2017 to March 2018, 272,752 pension pots were accessed for the first time, according to the Financial Conduct Authority’s September 2018 bulletin on latest trends in the retirement market.

This is almost double the number of people that used Pension Wise, showing a huge gap in take-up.

Furthermore, of those going into drawdown, 28,000 (31 per cent) did not use a regulated adviser.

Many over-50s are still ignoring the free government guidance on offer or the chance to take regulated advice, with DIY drawdown investors at risk of becoming pauper pensioners within a decade.

Over-50s with defined contribution pensions are eligible for guidance appointments with Pension Wise.