Talking head: The Treasury's Andrea Leadsom outlines how it is working with the pensions industry to strengthen the Pension Wise support mechanism for members.
It will give people the freedom to use the money they have saved as they see fit – and it will be an important decision.
Working closely with The Pensions Advisory Service and Citizens Advice, Pension Wise will provide guidance on the options available, either online, over the phone, or face to face.
Recruitment for the service is well underway and the first wave of guidance specialists are going through a rigorous training programme, which is accredited by the Chartered Insurance Institute.
Recruitment for the service is well underway and the first wave of guidance specialists are going through a rigorous training programme, which is accredited by the Chartered Insurance Institute
The Pension Wise website also launched in its test format in early February and is being finalised in the lead-up to April.
What you can see on that website today is the result of many months of testing the content and design with real consumers, monitoring their behaviour on the site and taking on board their feedback.
We have launched a multi-channel advertising campaign and we are already requiring pension providers to signpost their members towards the service, in order to make sure the brand is recognised and trusted.
The Treasury has recently sent out a letter to providers to include in ‘wake-up packs’ to members and we are working hard together with the National Association of Pension Funds and Association of British Insurers to develop further effective ways to signpost the service.
We are also legislating to make it an offence to imitate the Pension Wise service, because a strong, trusted and recognisable brand is essential to ward off scammers and make the service a success.
The guidance will encourage users to ask the right questions of their pension providers regarding costs and tax, to tailor their decision-making to their personal circumstances, and to be wary of scammers and fraudulent offers.
Our message is clear: this is an important and often complex decision. There will be support. And there must be no pressure.
The reform stands to provide unprecedented opportunities for customers, as well as to pension providers and schemes, who will want to serve a growing customer base.
Many providers have already risen to the challenge of flexible products and some have confirmed they will be offering a full range of flexibilities.
I look forward to continuing to work with the pensions industry, as well as with consumer groups, to make sure that everybody reaps the rewards.
Andrea Leadsom is economic secretary to the Treasury.
