16th July 2015
The Work and Pensions Committee has launched an inquiry into advice and guidance on pension flexibility changes following the introduction of the new retirement freedoms on 1 April this year.
The Committee is looking at whether people are adequately supported in making good, informed decisions about their retirement savings in light of the changes on access to pensions and pension drawdown introduced in April 2015.
The reforms gave people more freedom in choosing what to do with their retirement savings. The Work and Pensions Committee is now inviting written evidence on take-up, suitability, affordability and independence of the advice, guidance and information available to those approaching retirement. It is also seeking out recommendations for improvement.
Richard Graham MP, committee member and chair of the all-party pensions group, said: “Taking away the requirement to buy an annuity and introducing much greater flexibility in how and when individuals can access their pension savings should be a positive change for many. However getting the right guidance is key, and this inquiry will look at the guidance and advice being given, and how effective the system is in helping people make informed choices.”
Frank Field MP, chair of the Committee, added: “Many constituents were ripped off in the process of putting their earnings into pension savings. We have a duty to ensure they are not ripped off again if they wish to take their money out and spend some lump sums.”